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2022 (5) TMI 1525 - AT - Income TaxTP Adjustment - Non-consideration of gross profit (“GP”)/sales as the PLI respect of the international transaction of purchase of raw materials - HELD THAT:- We hold that PLI should be adopted for the purpose of comparing the assessee’s margin in Auto component manufacturing segment and that the comparable companies PLI should be GP by sales. We direct the AO/TPO to re-compute the arm’s length margin of the assessee in accordance with the above direction after giving reasonable opportunity of being heard to the assessee. This ground is allowed in favour of the assessee. Disallowance u/s. 43B - provision made towards bonus and long-term service awards along with the amounts actually paid and claimed as a deduction in the return of income - HELD THAT:- No argument that the assessee is entitled for claiming deduction u/s. 43B with respect to provision made for bonus and long-term service awards based on the actual amount paid on or before the due date for filing the return of income. The auditors, Price Waterhouse & Co., have verified the actual amount paid by the assessee, have certified the same in the tax audit report in Form 3CD stating that the assessee has paid the said amounts before the due date for furnishing the return of income u/s.139(1). Hence we are of the considered view that the assessee is entitled for the deduction u/s. 43B - Decided in favour of assessee.
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