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2018 (7) TMI 1546 - AT - Income TaxTPA - ALP determination - mark up determined by the TPO - Held that:- TPO has considered the mark up of MD Overseas Ltd. as comparable and PLI was worked out at (-)1.14%. Since non AE jewellery segment margin was computed by the assessee at 6.36%, the assessee had to get the non AE jewellery segment margin at 6.36%. Hence by balancing the figure by adding (-)1.14% of the above, the Assessing Officer got the adjusted margin of assessee’s non AE jewellery segment at 7.5% and made the addition on that basis. In our opinion, it is not appropriate to balance in such a way without making proper TP study on the issue. Accordingly, we remit this issue to the file of the Assessing Officer to refer the matter afresh to the TPO for further TP study and decide accordingly. This ground of appeal is partly allowed for statistical purposes. Allowable busniss expenditure - renovation of leasehold building - Held that:- Expenditure incurred by the assessee on renovation of leasehold building is revenue expenditure and not a capital expenditure, though it was of enduring benefit or advantage unless at the end of the term of lease, the items on which expenditure was spent could be retrieved by the assessee.
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