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2013 (11) TMI 68 - AT - Income TaxDetermining the Arm's Length Price (ALP) - international transactions - contribution towards ICC World Cup Cricket Tournament - reimbursement of advertisement expenses received by the assessee - provisions of warranty expenses - Held that:- the issue are covered by the decision of the tribunal in M/s LG Electronics India Pvt. Ltd. [2013 (5) TMI 633 - ITAT DELHI] - LGEIL has received commensurate benefit of its 40% share contribution. - the adjustments made by the TPO/ Assessing Officer on this account has rightly been deleted by the CIT(A). Reimbursement of of advt. expenses - Held that:- the assessee's objection that TPO has no jurisdiction is not sustainable in view of M/s LG Electronics India Pvt. Ltd. [2013 (5) TMI 633 - ITAT DELHI] - opinion by asking for a remand of the issue in light of the Special Bench decision, it cannot be said that revenue is seeking to change the basis of disallowance /adjustment made by the TPO. The Special Bench has expounded various issues which have to be considered in this regard. By dwelling on them it can not be said that a change of basis of disallowance/ adjustment is being sought. - matter remanded back. Warranty expenses - mere provision and not allowable - Held that:- tribunal in M/s LG Electronics India Pvt. Ltd. [2013 (5) TMI 633 - ITAT DELHI] has accepted the case of the assessee and allowed the deduction - Once the assessee is maintain his accounts on the mercantile system, a liability accrued, though to be discharge at a future date, would be a proper deduction while working out the profits and gains of his business. - Decided in favor of assessee.
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