Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1999 - ITAT PUNETP Adjustment - PLI of the assessee as determined by the TPO is 6.01% against the PLI of 8.90% of the comparables - HELD THAT:- On the facts relating to the PLI of the assessee, the TPO/Assessing Officer erroneously considered the PLI figure of 3.87% instead of 6.01%. This errors gave rise to the TP adjustment of Rs. 4,94,95,000/-. If the figure of 3.87% is considered, there shall be no TP adjustment warranted in view of the benefits of +/-5%. Assessee submitted that this fact can be verified at the level of the AO/TPO. Considering the said factual position and subject to the verification of these claims of the assessee by the Assessing Officer, the figure of 6.01% should be taken as PLI of the assessee at the entity level. In that case, no adjustments are required in view of the facts that the average of PLI of the comparables qua the assessee’s profits margin, fall within the range of +/-5% of the ALP. TPO/Assessing Officer is directed to verify the above figures of PLI of the assessee after giving opportunity to the assessee as per the settled principles of natural justice. Prior period expenses - treating the rebate allowed to a customer as prior period expense and thereby disallowing the same - HELD THAT:- As evident that the relevant sales took place and duly accounted in the books in the assessment year 2005-06 and the assessee made an adjustment by way of rebate to the same in the current assessment year 2006-07. The income-tax authorities disallowed the claim of rebate in sales for want of the evidences leading to the grant of such rebate in sales and booking the same in the year under consideration. The assessee could not improve his case even before us. Considering the same, we are of the opinion, the order of the DRP and the AO is fair and reasonable on this issue and it does not call for any interference. Accordingly, the relevant ground relates to the corporate addition is dismissed.
|