Home
Forgot password New User/ Regiser
2022 (5) TMI 1522 - AT - Income TaxTP adjustment - intra group services which were benchmarked separately by the assessee and the Ld.TPO rejected it by adopting a wholesome approach at entity level - HELD THAT:- As the transactions between the assessee and the AE has been aggregated by the Ld.AO without any basis. We also note that the benchmarking of the transaction has been considered by the Ld.TPO at entity level, without segregating the non-AE transactions which is a requirement as per section 92B of the Act. As held by various Courts, no addition can be made to the local transactions under Chapter X of the Act, and that the Ld.AO/TPO is supposed to determine the arms length price in relation to the international transaction with the AE only and not with any third party. This alone warrants to entire issue to be remanded back to the Ld.AO/TPO to reconsider the transfer pricing issues de novo. The Ld.TPO is directed to consider the transactions and apply the appropriate method as per section 92 r.w. Rule 10A of the Act, qua the facts of the assessee. The assessee is directed to file all requisite details in support of its contention to establish the need to analyse the transaction independently. The Ld.TPO shall consider the claim of assessee in accordance with law and by granting appropriate opportunity of being heard to the assessee. Nature of expenses - treating certain expenses on advertisement as capital in nature - HELD THAT:- The assessee has not been able to establish that the expenditure is incurred are revenue in nature. Even before this Tribunal, the Ld.AR could not counter the observations of Ld.CIT(A) reproduced hereinabove. We do not find any infirmity in the view taken by the Ld.CIT(A) and the same is upheld. Disallowing the foreign exchange fluctuation on restatement of receivables and payables - HELD THAT:- In the present facts also, there is no dispute that the outstanding liability was in respect of trade receivables and payables and therefore loss would be on revenue account. In such circumstances respectfully following the above view in assessee’s case for A.Ys. 2012-13 and 2013-14 [2019 (11) TMI 857 - ITAT BANGALORE] we direct the Ld.AO to allow the deduction as claimed by the assessee. Interest free loan has been granted to the Director of the company towards house deposit for his residence - Salary advance was duly taxed as perquisites in the hands of such employee-thus cannot be taxed twice - HELD THAT:- We direct the Ld.AO to verify the above submissions of assessee and to consider it in accordance with law.
|