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2015 (11) TMI 275 - AT - Income TaxTransfer pricing adjustment - Held that:- Transfer pricing study made by the TPO is far away from reality. If the erroneous presumptions of the TPO are excluded, we find that the price disclosed by the assessee is comparable and compatible to ALP and no adjustment is called for in the present case. Since the facts in assessment year 2007-2008 are identical, we are inclined to confirm the order of the Commissioner of Income Tax (Appeals) on this issue by placing reliance on the above order of the Tribunal - Decided in favour of assessee. Disallowance u/s. section 40(a) (i) - interest payments to Andhra Pradesh Mineral Development Corporation - CIT(A) deleted the addition - Held that:- The impugned payment which has direct link or immediate nexus with the trading liability being connected with the purchase payment and it will not fall under the category of interest as defined in Sec. 2(28A) of the Act. Payment made by the assessee in the present appeal cannot be termed as interest and accordingly we are in agreement with the findings of the Commissioner of Income Tax (Appeals). Without entering into the controversy so as to whether the payment is within the ambit of interest in Sec. 2(28A), the assessee is also bound to succeed in its alternative argument that the entire payment if made during the previous year relevant to the assessment year under dispute no disallowance would be made u/s.40(a)(ia) of the Act - Decided in favour of assessee.
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