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2019 (11) TMI 1644 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- We find merit in the prayer of the assessee to consider the companies, which are engaged in the similar line of business in the very same product, as comparable companies. It is the submission of the assessee that the comparables selected by TPO are engaged in different activities, though they are engaged in food processing only. The Ld A.R submitted that the assessee has already gathered annual reports of companies dealing in the very same product, i.e., gherkins dealt with by the assessee. Accordingly we are of the view that the issue relating to bench marking of international transactions requires fresh examination at the end of the AO/TPO by considering the fresh comparable companies. Export incentives - whether they are part of operating income or not? - HELD THAT:- Issue been settled by Hon’ble Bombay High Court in the case of Welspun Zucchi Textiles Ltd [2017 (1) TMI 1037 - BOMBAY HIGH COURT]. Accordingly, we direct the AO/TPO to consider export incentives as part of operating income. Whether the outstanding receivables due from AE is an international transaction or not? - HELD THAT:- Since we are restoring main issue to the file of AO/TPO, we restore this issue also to the file of AO/TPO for examining it afresh.
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