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2016 (8) TMI 815 - HC - Income TaxAllocation of selling and distribution expenses for the purpose of deduction under section 80IB - Tribunal reversing the view of the Assessing Office - Held that:- Tribunal relied on the decision of the Supreme Court in case of Bombay Dyeing & Manufacturing Co. Ltd. [1996 (2) TMI 8 - SUPREME Court ] which was squarely applicable in the present case. No question of law arises Transfer pricing adjustment - Assessing Officer had made additions on the ground that the commission paid by the assessee to associated enterprise was not at arm's length - Held that:- The entire issue was based on facts and appreciation of record. The Tribunal noted that the assessee had given justification for the payment of the commission and why it was at arm's length. It was pointed out that the commission paid by the assessee to the Associated Enterprise was at the rate of 7.84% as against 11% paid to unrelated party. It was found that the rate of commission ranged from 0.38% to 33.33% whereas the assessee's rate came to 3%. The Tribunal noted that the Revenue authority did not bring any comparable case on record to show that the payment of commission by the assessee to the associated enterprise was not at arm's length.
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