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2017 (2) TMI 449 - AT - Income TaxDisallowance u/s 40(A)(9) - reimbursement of expenses of appellant made to its Staff Recreation club - Held that:- This issue is covered by the decision of the co-ordinate bench of this tribunal in assessee’s own case for the Asst Year 2003-04 Disallowance of deduction u/s 80HHC of the Act on total company as against the individual product wise claimed by the assessee - Held that:- We find that as agreed by the ld AR that this issue is covered against the assessee by the decision of the Hon’ble Apex Court in the case of IPCA Laboratory Ltd vs DCIT [2004 (3) TMI 9 - SUPREME Court] as held that while computing the business profit for the purpose of section 80HHC of the Act, all the trading results of different units of the business of the assessee are to be aggregated and deduction u/s 80HHC of the Act would be allowable only when there is positive income of the business after such aggregation. Transfer pricing adjustment - comparable selection - Held that:- Auction and Private Businesses are different in terms of the functions performed, risks assumed and hence should not be combined for the purpose of comparison. The auction business of the assessee is comparable with auction purchases with third parties. Price charged by the assessee on the international transactions computed on the basis of segmental results of Auction and Private Business is at Arm’s Length and no adjustment need to be made thereon. In view of the above conclusion, the other contentions put forth on behalf of the assessee do not require any consideration. Disallowance of expenditure incurred on payment of cess on green leaf from composite income - Held that:- Hon’ble Calcutta High Court in the case of CIT vs A.F.T. Industries Ltd reported in (2004 (7) TMI 81 - CALCUTTA High Court) wherein it was held that the same was to be fully allowed from the composite income. Claim of depreciation - Held that:- For purpose of computing the WDV of depreciable assets used in tea business, only 40% instead of 100% of depreciation allowable at the prescribed rate should be deducted.
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