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2018 (10) TMI 1350 - AT - Income TaxEntitlement to deduction u/s 10A - Held that:- When the claim u/s 10B of the I.T.Act was sought to be denied, the assessee during the course of assessment proceedings claimed deduction u/s 10A of the I.T.Act. In the various mentioned cases, it was stated when claim u/s 10B of the I.T.Act is denied, the assessee’s alternative claim u/s 10A of the I.T.Act made during the assessment proceeding or before Appellate authorities has to be considered and granted, provided conditions are satisfied for such deduction, since both sections 10A and 10B of the I.T.Act are pari materia. In view of the above judicial pronouncement, we deem it appropriate to remit the issue to the Assessing Officer for fresh consideration. TPA - Erroneous exclusion of forward premium while computing the operating margin of the assessee (Transfer Pricing) - Held that:- As in assessee’s own case for the assessment year 2010-2011 Tribunal had restored the issue to the TPO with certain specific directions to place necessary evidence before the TPO to claim that premium on forward exchange contract is earned in the normal course of the business to hedge against fluctuations in foreign currency exchange rate and gains from such contract has to be considered while computing the PLI in the international transaction with the AE. It is ordered accordingly. Selection of comparable - Held that:- We find that the objections raised by the assessee have been disposed off by the DRP without passing a speaking order. The assessee has raised various contentions why the above mentioned companies are not comparable companies. The objections with regard to non-availability of segmental account details for the above comparables, presence of intangibles for above mentioned companies and failure to satisfy certain filters adopted by the TPO himself were not discussed in TPO’s order nor in DRP’s order. The DRP on its part has merely confirmed the TPO’s order without passing a speaking order. Therefore, we deem it appropriate to restore this issue to the files of the TPO
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