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2015 (4) TMI 176 - AT - Income TaxTransfer pricing adjustment - Dis-allowance of foreign exchange gain - said amount was not claimed as deduction while making the computation as a result, the loss of the year was lesser to that extent - Held that:- The Hon'ble Bombay High Court in the case of CIT v. Pruthvi Brokers & Shareholders (P.) Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT] after considering the judgments of Goetze India Ltd. (2006 (3) TMI 75 - SUPREME Court) and National Thermal Power Co. Ltd. v. CIT [ 1996 (12) TMI 7 - SUPREME Court] has held that the appellant authorities can exercise their jurisdiction to consider the claim of the assessee not raised in return. We are of the considered opinion that, since the deduction claimed by the assessee which has been left out at the time of filing return has not been considered at all, in the interest of justice, it would be just and proper if the issue is remitted back to the Assessing Officer to consider the claim of assessee and allow the same, if the assessee is entitled to it. - Decided in favour of assessee for statistical purposes. Adjustment of TP - international transactions do not satisfy the arm's length principle envisaged under the Act - Held that:- Under-utilization of production capacity in the initial years is a vital factor which has been ignored by the authorities below while determining the ALP cost. The TPO should have made allowance for the higher overhead expenditure during the initial period of production. In view of the above, we deem it appropriate to remit this issue back to the Assessing Officer with a direction to consider the claim of the assessee with respect to idle capacity adjustment during the relevant period while determining the ALP cost. The assessee is also directed to produce relevant documents in comparable units for the necessary analysis. - Decided in favour of assessee for statistical purposes.
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