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2018 (9) TMI 138 - AT - Income TaxTransfer pricing adjustment - adjustment for startup phase of operation - adjustment for abnormal expenses - Held that:- Subject to verification of the claim of the assessee, in our view, adjustment sought by the assessee should be considered on its merits. The assessee has also claimed deduction towards start up phase adjustment. However we notice that the assessee could not substantiate the said claim with any credible material. TPO has observed that the assessee company has stated its operation in the year 2006 and accordingly, it has got about four years of experience in this field. The assessee could not provide any material to show that it is continue to face the difficulties peculiar to the start up phase. There should not be any doubt that the responsibility to substantiate the claim put forth lies upon of the assessee. Accordingly we are of the view that the tax authorities are justified in rejecting this claim of the assessee. With regard to adjustment claimed towards abnormal items, we have already held that the same is required to be considered on merits. Accordingly this claim of the assessee requires examination at the end of the Assessing Officer/TPO. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer/TPO to examine the said claim of the assessee. In the set aside proceedings, the Assessing Officer/TPO should also consider the mistakes pointed out by the assessee with regard to computation made by the TPO.
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