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2017 (4) TMI 1552 - ITAT CHENNAIAdjustment for differences in working capital levels - HELD THAT:- There is a positive working capital as seen from the balance sheet submitted by the assessee. Accordingly, we remit the issue to the file of AO to grant suitable working capital adjustments after making proper TP study. Hence, this ground is allowed for statistical purposes. Recovery of advances written off as an operating item in computing the operating profits for benchmarking transactions - HELD THAT:- As relying on LOGICA PRIVATE LTD. [2015 (3) TMI 401 - ITAT BANGALORE] we remit the issue to the file of AO for the purpose of excluding recovery of advance written off from operating profit and to compare ALP. Hence, this ground raised by the assessee is allowed. Disallowing an adjustment in respect of the extraordinary foreign exchange loss suffered by the appellant as against the comparable companies - HELD THAT:- As per MOTONIC INDIA AUTOMOTIVE PVT. LTD. VERSUS THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-IV (3) , CHENNAI [2016 (8) TMI 1423 - ITAT CHENNAI] this issue is remitted to the file of AO for considering the same afresh in the light of above Order of Tribunal. Applying the comparability criterion inconsistently for different companies and erred in considering companies as comparable, even when they fail the comparability criterion - HELD THAT:- We find force in the argument of ld.D.R that the sales details are not made available to TPO. Hence, the TPO considered it as compared to the assessee’s case. In the case of M/s.Nitin Fire Protection Industries Ltd., the major income is included from project related activity. It cannot be compared to the assessee’s case. Accordingly, we direct the AO to exclude the M/s.Nitin Fire Protection Industries Ltd. from the comparables and decide accordingly.
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