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2013 (11) TMI 152 - AT - Income TaxAddition on account of Arm’s Length Price – Held that:- The TPO wrongly considered that the assessee is engaged in the business of IT/IT enabled services – CIT(A) has not allowed any opportunity to AO/TPO to rebut the comparables given by the assessee – According to assessee his business was of engineering, drawing and designing services - The issue was set aside for fresh adjudication. Disallowance on account of deduction u/s 80HHE – Held that:- The relevant provisions of Section 80HHC total turnover includes anything which has nexus with sale proceeds and excludes everything which has no such nexus - Turnover should be restricted only to such receipts which have an element of profit in it – Provisions of section 80HHC relevant in this context are analogous to the provisions of Section 80HHE – Keeping in view the setting aside of the first issue of the case the enhancement by TPO’s order will have no impact - The proviso to Section 92C(4) prohibits any deduction under Chapter VI-A to be allowed on the enhancement made as per the TPO’s order - No effect is to be given to the addition made by the Assessing Officer as per the TPO’s order while computing deduction under Chapter VI-A – Decided against Revenue.
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