Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 766 - AT - Income TaxInternational transaction - Double addition of the same amount - Allowance of any expenditure arising from an international transaction shall also be determined having regard to the ALP – Held that:- In the instant case the assessee has not claimed the expenditure of Rs. 7,42,20,575/- during the impugned assessment year and has itself disallowed the same while computing its taxable income – Therefore, the provision of section 92 is not applicable - There cannot be double disallowance/addition of the same amount - Although the transaction between the assessee and its AE falls within the meaning of an international transaction still no adjustment on account of ALP can be made since the assessee has suo-moto added the amount while computing its taxable income for the impugned assessment year and no benefit of the same has been taken either by capitalising it and claiming depreciation on it or taken benefit in subsequent years – Decided in favor of Assessee. No proper appreciation of facts presented by assessee, by the Assessing officer - Assessee company has undertaken international transaction valued at Rs. 36,98,134/- with Eaton Corporation on account of business support services – Held that:- Assessee vide letter dated 03-09-2010 addressed to the TPO has categorically requested for adjustment for differential risk. He has also cited certain decisions – In the said letter itself, the assessee has computed such risk adjustment - However, TPO in his order has observed that no such adjustments have been made by the assessee nor claimed during any time of the assessment proceedings - Restored the issue to the file of the Assessing Officer with a direction to decide the issue afresh and in accordance with law – Decided in favor of assessee for statistical purpose.
|