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2016 (8) TMI 1439 - AT - Income TaxTP Adjustment - computation of net margin of the assessee - revised operating margin of the assessee, after excluding the foreign exchange losses, works out to be 15.09% - HELD THAT:- We observe that various decisions of this Bench as well as other benches of the Tribunal have treated the foreign exchange losses as operating in nature. Hence such items of expenditure or gain are to be considered as operational in nature in case of comparables. Selection of uncomparable companies - Accentia Technologies Ltd.is to be deselected due to extraordinary events of acquisition. Also the said company has inorganic growth, functionally dissimilar, presence of intellectual property rights and extra-ordinary events as relying on M/S. HYUNDAI MOTORS INDIA ENGINEERING P. LTD. AND VICA-VERSA [2015 (11) TMI 1648 - ITAT HYDERABAD] E-clerx Services Ltd. company to be rejected by the coordinate bench of this Tribunal in assessee’s own case for AY 2009-10 for functional dissimilarity, diverse portfolio and lack of segmental data. Also it has abnormal profits and extraordinary events and unreliable data. TCS e- Serve International Ltd. - no segmental information available for the said company and it has extra-ordinary events during the year and presence of brand value is also there. Turnover of the assessee company for this assessment year is around ₹ 50 crores as against the turnover of TCS e-Serve Limited of ₹ 1405.10 crores. Therefore, following the turnover filter as well as taking note of the fact that it owns and possesses brand value and intangibles as compared to the assessee which does not own such assets, we direct that this company be excluded from the list of final comparables Deduction u/s 10A computation - DRP reducing the entire communication expenses of ₹ 52,44,300/- from the export turnover for the purpose of computing deduction where as the actual leased line – internet charges incurred by the assessee was ₹ 15,81,279/- - HELD THAT:- We remit this issue to the file of the AO/TPO to verify and decide the issue in accordance with law after providing reasonable opportunity of hearing to the assessee. These grounds are allowed for statistical purposes. Charging interest u/s 234A - assessee submitted that the AO ought to have appreciated that the return of income was filed by the assessee within the due date and interest u/s 234A is not applicable - HELD THAT:- We remit this issue back to the file of the AO/TPO to verify the record whether the assessee has filed the return of income within the due date or nor and decide issue accordingly. Non granting credit for tax deducted at source as claimed in the return of income - HELD THAT:- AO is directed to verify the claim of the assessee in accordance with law
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