Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 496 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Held that:- The issue relating to comparability of companies objected by assessee are covered by various decisions of different benches of the Tribunal for the very same AY. In case of Ness Innovative Business Pvt. Ltd. Vs. DCIT [2014 (7) TMI 303 - ITAT HYDERABAD] the coordinate bench rejected Bodh tree consulting ltd. Exensys Software Solutions Ltd., Sankhya Infotech Ltd., Foursoft Ltd., Thirdware solutions Ltd. Tata Elxsi Ltd. and Infosys Technologies Ltd. In view of the aforesaid, accepting the submissions of ld. AR, we direct A.O./TPO to exclude aforesaid companies from the list of comparables. - Decided in favour of assessee. Mapple E Solutions, Nucleus Net Soft and GIS India Ltd., Vishal Information Technologies Ltd. and Wipro BPO Solutions Ltd. for various reasons are not comparable to a captive ITES provider. See M/s HSBC Electronic Data Process India Ltd. Vs. DCIT [2013 (9) TMI 485 - ITAT HYDERABAD ] Inclusion of reimbursement cost in the operating cost for the purpose of determining ALP of software development services segment - Held that:- reimbursement cost should be excluded from the OC for determining ALP. As far as the contention of ld. DR that TPO may be directed to determine the ALP of the reimbursement cost on stand alone basis, we are unable to accept the same as the same does not arise out either from the order of TPO or ld. CIT(A). Since, while considering assessee’s appeal we have to restrict ourselves to the grounds raised by assessee, this issue raised by ld. DR is left open to be decided in an appropriate case. See M/s HSBC Electronic Data Process India Ltd. Vs. DCIT [2013 (9) TMI 485 - ITAT HYDERABAD ] Disallowance of foreign exchange fluctuation loss - Held that:- As could be seen from the discussions made by A.O., he has disallowed assessee’s claim of loss on foreign exchange by treating it as notional. He has not said that loss is not connected with assessee’s business. Therefore, if assessee can prove that loss on account of foreign exchange fluctuation was not notional but actually incurred same cannot be disallowed. We, therefore, remit this issue to the AO for deciding afresh after due opportunity of being heard to assessee. Decided in favour of assessee for statistical purposes. Disallowance of leave encashment expenses - Held that:- We failed to locate any disallowance on account of leave encashment made by AO. As observed by ld. CIT(A), there is absolutely no mention of this issue in the assessment order. That being the case, we fail to understand how and why this ground was raised by assessee. When this factual position was pointed out to the ld. AR, he also agreed that no specific disallowance has been made by AO. In the aforesaid view of the matter, we find no reason to interfere with the decision of ld. CIT(A) on this issue. - Decided against assessee. Disallowance of expenditure incurred on purchase of software - Held that:- No infirmity either in the order of A.O. or in the order of ld. CIT(A). As could be seen, assessee itself, before A.O. had agreed for allowance of depreciation on the expenditure claimed on software. That being the case, we do not see any reason to interfere with the order of ld. CIT(A) on this issue. - Decided against assessee.
|