Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1544 - AT - Income TaxComputation of segmental margin - Validity of order u/s 144C(13) - Held that:- The directions passed by DRP u/s 144C (5), as it can be seen in the present case, are not speaking about what objections were raised by the assessee and how they have been found to be not acceptable. The DRP has simply observed that the TPO has given reasons for rejecting the comparables and by the Assessing Officer in the draft order. The order passed by the DRP is a non-speaking order on the issues raised by the assessee, not stating the objections raised by the assessee and the reasons have also not been given as simply the order of TPO and Assessing Officer are referred. We find that similar issue was considered by the Hon'ble Delhi High Court in the aforementioned case of Vodafone Essar Ltd. [2011 (12) TMI 22 - DELHI HIGH COURT] against the order passed by the DRP. We find that it is a fit case where this issue should be restored back to the file of DRP to pass a detailed order stating all the objections of the assessee and disposing them by giving a cogent and germane reason for adjudication of the objections of the assessee. We direct accordingly. After receiving the order from DRP, the Assessing Officer will again pass order u/s 144C(13) and the present assessment passed by the Assessing Officer is set aside as the DRP is directed to readjudicate the objections raised by the assessee as per directions give above. We direct accordingly. This ground of appeal of the assessee is allowed for statistical purposes. Disallowance of working capital adjustments - Held that:- We are inclined to direct the Assessing Officer to consider working capital adjustment while determining the ALP of international transactions of the assessee with its AEs in this case also. Hence this ground of appeal of the assessee is partly allowed. Disallowance made u/s. 14A - Held that:- We are inclined to direct the Assessing Officer to exclude interest and bank charges which are not related to exempt income yielding investments. Hence, this ground of appeal of the assessee is partly allowed for statistical purposes.
|