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2013 (9) TMI 645 - AT - Income TaxApplicability of CUP method for determination of ALP in international transaction – Geographical difference of comparable material – Held that:- Geographical difference is not material so far as it applies to the logistics industry - There is splitting of gross profit equally at 50:50 even in Pakistan, Bangladesh and Sri Lanka which fall under the same geographical region – No any infirmity in the CUP method (50:50 module) adopted by the assessee – Decided in favor of Assessee. Disallowance of expenditure whose records are not available and destroyed - AO not being satisfied, disallowed 2% of expenditure - Accordingly, a sum of Rs.6,23,90,000/- was disallowed - Held that:- FIR has been lodged and copy of FIR was also submitted for the destruction of the records - In absence of records some estimate of disallowance has to be made. The chart given by the assessee before Ld. DRP has not been controverted. The difference in the sales and cost of sales as compared to earlier year is 1%. Therefore, disallowance upto 1% of Rs.311,95,42,386/- will meet the interest of justice – Decided partly in favor of Assessee.
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