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2013 (9) TMI 334 - AT - Income TaxTransfer pricing adjustments - Arm’s Length Price - selection of comparables - Rule 10B(4) - Held that:- the deviation took place in the final list of comparables relied on by the Assessing Officer as against the companies selected by the assesseecompany. The list of comparable companies relied upon by the assesseecompany has been rejected by the Transfer Pricing Officer without stating any reason, even though the Transfer Pricing Officer has, by and large, agreed with the general premises on which the assessee has computed its arm's length price. Even though the Transfer Pricing Officer has adopted the transactional net margin method to compute the arm's length price, he has overruled the objections of the assessee without stating any reason. The arbitrary selection of comparables has in fact inflated the operating profit in the computation made by the Transfer Pricing Officer. - Deletion of transfer pricing adjustments by CIT(A) sustained - Decided against the revenue. Disallowance of Dividend Tax delay charges, interest for delay in remitting TDS, expenses incurred for delay in UTI dividend payments, etc. It is to be seen that the delay charges attributable to dividend tax partakes the character of dividend tax itself. Dividend tax as such is not deductible - the delay charges also are not deductible - This is the same case in respect of interest for delay in remitting TDS - There cannot be a different view on expenses incurred for delay in UTI dividend payments - Therefore, these expenses claimed by the assessee are not deductible in computing its income. - Decided against the assessee.
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