Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 126 - AT - Income TaxTransfer Pricing Adjustment – Held that:- There is no defect in the audited segmental accounts submitted by the assessee - Its entire work depends on the man hours and it is maintaining a system known as TMA which generates monthly reports for the purpose of tracking man hours. The assessee has given the details regarding the man hours utilized by it for the purpose of each project and on the basis of such system the assessee has prepared the segmental accounts - Ceratin expenses such as nature of job work; consulting fee and service charge; staff welfare; rent; rate and taxes; repairs; insurance postal and telegraph; traveling and conveyance; electricity water and gas cannot be said to be non-allocable on the basis of man hours relating to non bidding activity of EPC Division - The difference between ALP determined by the Ld. TPO in respect of AE transactions and ALP charged by the assessee is less than 5% - Decided in favour of assessee. Guarantee Commission – Held that:- The assessee had issued counter guarantee to its Associated enterprise and had received guarantee commission @ 1.2% per annum - TPO applied 3% guarantee commission - The assessee has not submitted any contradictory evidence to suggest that the rate applied by Ld. TPO at 3% was not appropriate - The evidence submitted by the assessee relates to Bank Guarantee which is less than ₹ 1.00 crore - The said evidence cannot be taken as comparable instance – Decided against assessee.
|