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2014 (3) TMI 619 - AT - Income TaxDeletion on account of reserves and surplus – Expenses treated as capital receipt – Held that:- The amount was received essentially for restoration of the capital structure by recoupment of net worth - The assessee company had incurred accumulated losses and this has resulted in erosion of net worth - The parent company received non-refundable financial assistance of up to Euros 6 lakhs from its shareholder company – thus, the CIT(A) was right in his factual findings that the amount was received towards erosion of net worth of the company – Relying upon Handicrafts and Handloom Export Corporation of India vs. CIT [1981 (12) TMI 25 - DELHI High Court] – the order of the FAA is upheld – Decided against Revenue. Deletion made u/s 92CA(3) of the Act – Transfer Pricing Adjustment – Held that:- Infomedia India Ltd. is a company which is engaged in the business of printing and publishing which is totally a different line of business vis-a-vis assessee's business of trade fares and exhibitions - the rejection of this comparable by the CIT(A) is upheld - The only other relief given is that the TPO was directed to exclude domestic transactions in computation while computing adjustment based on ALP of international transactions – there was no infirmity in the finding as transfer pricing adjustments are to be confined only to international transactions – Decided against Revenue.
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