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2015 (8) TMI 418 - AT - Income TaxTransfer Pricing adjustments - assessee had raised specific ground before the DRP argued that the TPO had included the comparables that were not relevant for determining the ALP or had excluded the comparables that were relevant,that the TPO had adopted incorrect operating margins for certain companies,that he had not considered entity level revenue,that he did not allow the assessee the benefit of risk adjustment - Held that:- Directions of the DRP are silent over all the issues raised by the assessee against the order of the TPO.In our opinion,the order of the DRP falls under the category of non speaking order devoid of reasons.While deciding the ground with regard to comparables,that the TPO had done a systematic search and identified comparables from the accept reject method of the taxpayer’s search itself,that the TPO had applied proper filters and obtained segmental accounts. In our opinion,these observations are very general and do not deal with the specific objections raised by the assessee.The DRP is supposed to support or distinguish the comparables,when the assessee files objection citing the decided judgments.In the case before us,the DRP has not discussed merits of any of the comparables objected to by the assessee.Similarly,the final decision of the DRP about FAR analysis is very general. Thus the order passed by the DRP is vague and unclear. So,in the interest of justice,matter is being restored back to the file of the DRP for fresh adjudication, who would afford a reasonable opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purposes. Non exclusion of expenses incurred in foreign currency for travelling and communication charges from the total turnover - Held that:- The aforesaid question stands answered against the revenue in view of the decision of this Court in the case of CIT V/s. Gem Plus Jewellery India Ltd. Reported in [2010 (6) TMI 65 - BOMBAY HIGH COURT ] wherein held exemption u/s. 10A to be granted on foreign exchange gain earned (due to fluctuation of foreign exchange) on realization of export receipts in the year of export - Decided in favour of assessee
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