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2016 (3) TMI 1459 - AT - Income TaxTP Adjustment - DRP directing the TPO/AO to provide freight subsidy where the figure of freight subsidy is not separately available in the annual report of the assessee company - HELD THAT:- We are not in agreement with the findings of the TPO, in view of the fact that in para-20 schedule to the notes of account of the annual report of global green, it is clearly mentioned that transportation outward expenses are net of freight subsidy. As further observed that by the DRP in such circumstances, in the absence of any contradictory evidence, it cannot be presumed that the freight subsidy has not been reduced from the operating cost and therefore, in the absence of information even though adjustment is not possible, but in such circumstances, for uniform comparability, the freight subsidy in the case of the assessee company has to be considered as operating in nature. The AO is accordingly, directed to consider the said subsidy as part of operating revenue. Working capital adjustment - As reliance has been placed by the assessee are of the view that the working capital adjustment needs to be allowed. AO is accordingly, directed to allow the working capital adjustment. Decided against revenue.
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