Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1824 - AT - Income TaxTransfer pricing adjustment - international transactions pertaining to provision of design & engineering services and supply of equipment - MAM Selection - HELD THAT:- As decided in own case [2014 (3) TMI 23 - ITAT DELHI] the assessee was quite justified in adopting internal TNMM and comparing the profit earned on its transactions with AEs with profit earned with non- AEs. Accordingly, the ALP adjustment of deserves to be deleted. Adjustment in respect of direct supplies/services - considering that the PE of the assessee was involved in negotiating and concluding contracts on behalf of the head office (HO) with Indian customers and that the AO erred in determining the gross profit @ 25% from the direct sales/services and attributing 50% thereof to the PE of the assessee - HELD THAT:- As decided in own case [2014 (3) TMI 23 - ITAT DELHI] in the absence of assessee’s cooperation by submission of requisite information, the Assessing Officer had no option except to resort to this addition, on estimate basis, learned representatives fairly agree that the issue is covered, in favour of the assessee, by the Tribunal’s order dated 31st October 2013 in assessee’s own case for the assessment year 2006-07. We see no reasons to take any other view of the matter than the view so taken by the coordinate bench. In the assessment order and DRP’s order also, the stand taken in the earlier years is reiterated. Respectfully following views of the coordinate bench on this issue in respect of an earlier assessment year, we delete the impugned addition. Ad-hoc disallowance of business expenses - HELD THAT:- neither the AO nor the ld. DRP had not given any cogent reason and the basis while making ad-hoc disallowance. We, therefore, considering the totality of the facts, deem it appropriate to remand this issue back to the file of the AO to be decided afresh after proper verification from the documents furnished by the assessee before the ld. DRP, in accordance with law after providing due and reasonable opportunity of being heard to the assessee. Charging of interest u/s 234B - HELD THAT:- The point worth noting in this regard is that the Finance Act, 2012 has inserted this proviso prospectively w.e.f. 1.4.2012. Even the Memorandum explaining the provisions of the Finance Bill, 2012 provides that: 'This amendment will take effect from 1st April, 2012 and would, accordingly, apply in relation to advance tax payable for the financial year 2012-13 and subsequent financial years'. It, therefore, becomes vivid that the insertion of the proviso to section 209(1) is prospective and the same cannot be applied retrospectively to the year under consideration. In that view of the matter and respectfully following the above precedents, we hold that no interest can he charged u/s 234B of the Act for the year under consideration. This ground is allowed
|