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2020 (1) TMI 1374 - AT - Income TaxComputation of taxable income - Enhancing the ratio of commercial linehaul charges to total linehaul charges ('CCLC to TLC ratio') - Whether DRP have erred by not considering the suo moto enhanced CLC to TLC ratio based on the methodology agreed between the competent authorities of the United States of America and India - as argued the actual CLC/TLC is 2.08% and the same may be adopted, and estimated or adjusted CLC/TLC should not be more than 7.5% as was adopted by the Assessing Officer as a result of MAP proceedings - also that the Assessing Officer himself has adopted 4% as CLC/TLC ratio - HELD THAT:- While the outcome of MAP proceedings does not indeed find the parties for the years other than years before the competent authorities, it does indeed provide a reasonable basis particularly when it is dealing with an estimation parameter. The Assessing Officer has given vague reasons for deviating from the same in the present year. In our considered view, therefore, it will meet the ends of justice that 7.5% as adjusted CLC/TLC ratio is adopted for computing this year’s taxable income as well. To this extent, we uphold the plea of the assessee. Levy of interest under section 234B - assessee has only sought consequential relief, as is admissible. Credit for tax deduction at source and levy of interest under section 234A - Assessee only pray for necessary verification of facts. Learned DR does not oppose the consequential relief and the verifications so sought. We accordingly allow these prayers as well.
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