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2019 (9) TMI 259 - AT - Income TaxRectification u/s 254 - TP adjustments - determination of ALP - Expenditure towards payment of Technical Fee and Project Management Fee was capitalized by the assessee and capital transactions are outside the purview of transfer pricing mechanism - HELD THAT:- As decided in own case [2019 (3) TMI 1537 - ITAT PUNE] undisputed fact that the assessee has not claimed the expenditure toward payments of Technical Assistance fees and Project Management fees. The assessee has capitalized the same as the project was not complete in the period relevant to the assessment year under appeal. The capital transactions are outside the purview of Transfer Pricing mechanism. There is no denying the fact that in the subsequent years the assessee would be claiming depreciation on the cost of capital asset which would include payment of fees for Technical Assistance and Project Management. Therefore, determination of ALP of such services in the year of payment of such fees would be relevant. While concluding, a mistake has crept in the order. In para 12 of the order, it was wrongly mentioned that ground No.1 and 2 are restored to the file of Assessing Officer. In fact, it is ground No.3 which needs to be restored to the file of Assessing Officer for determination of ALP. Further, in para 13 while summing up the finding on ground No.3, it was wrongly observed that ground No.3 becomes academic and hence, is not deliberated upon. In para 10 of the order there is specific finding on the issue of determination of ALP by the Assessing Officer. The mistake crept in paras 12 and 13 of the order dated 15-02-2019 therefore, needs to be rectified
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