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2020 (9) TMI 314 - AT - Income TaxTP Adjustment - comparable selection - functional dissimilarity - HELD THAT:- Assessee company is engaged in the business of Design & Engineering Services in the field of refineries, petrochemicals, cements, fertilizers & power plants. The assessee company is also, engaged in the business of detailed engineering of EPC projects mainly with respect to terminals, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Addition of undisclosed receipt - AO called upon the assessee to submit reconciliation of TDS and income offered to tax, on the basis of TDS claim made as per Form- 26AS - HELD THAT:- In light of averments made by the assessee that income from TDS deducted on account of additional design & engineering service provided by IOT Mabagas Limited, was already offered tax in the Asst.Year 2009-10, we set aside the issue to the file of the Ld. AO and direct him to cause necessary verification and in case income was already offered to tax for Asst.Year 2009-10, then the Ld. AO is directed to delete additions for the year under consideration. Disallowances of professional fees for non deduction of TDS - HELD THAT:- We deem it appropriate to set aside the issue to the file of the Ld. AO and direct him to cause necessary enquiries, in light of claim of the assessee that said amount pertains to bad debts written off. In case, the Ld. AO found that the amount of disallowances is not pertains to professional fees on which tax is required to be deducted, and then the same may be considered in accordance with law, as applicable to write off of bad debts. Value of the TP adjustment - Whether value of the TP adjustment needs to be made to the value of the international transactions instead of making the adjustments at entity level? - HELD THAT:- Limit the adjustment only to the AE transactions by following the decision of Hon’ble Bombay High court, in the case of Ratilal Becharlal & Sons [2015 (11) TMI 1524 - BOMBAY HIGH COURT] where it was categorically held that TP Adjustment needs to be made at transactions level and not at entity level.
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