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2016 (9) TMI 1488 - AT - Income TaxTPA - Comparable selection - functional similarity - Held that:- Assessee is into providing software development services, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Non considering write off of liability provision in computing AL operating mark on cost - Held that:- As decided in SONY INDIA (P) LIMITED. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 9 (1) [2008 (9) TMI 420 - ITAT DELHI-H] excess provision written back in the P&L account is forming part of operating profit of the assessee. We direct the AO/TPO that excess provision written back in the P&L account should be accepted as forming part of operating profit of the assessee. Including cost reimbursement of expenses received from associated enterprises part of operating cost and operating income in computation of ALP - Held that:- As the issue in dispute was regarding reimbursement of expenses and since full details were not available on record regarding these expenses in that case, the matter was restored back to the file of the AO/TPO for detailed verification. In the present case, this is not in dispute that full details are not available and therefore, this Tribunal order in LG SOFT INDIA (P.) LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 12(2) [2013 (9) TMI 191 - ITAT BANGALORE] is not relevant in the present case.
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