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2022 (1) TMI 277 - AT - Income TaxTP adjustment made in respect of payment of Corporate management services - Admission of additional evidence - HELD THAT:- We are of the view that, in the interest of natural justice, the additional evidences furnished by the assessee requires to be admitted. Accordingly, we admit them. We also notice that the details of various facilities availed by the assessee from its AE as well as the nature of services provided by the AE to the assessee have not been correctly appreciated by the AO/TPO. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO/TPO. Accordingly, we set aside the order passed by the AO on this issue and restore the same to the file of AO/TPO for examining it afresh duly considering the additional evidences furnished and also the information and explanations that may be furnished by the assessee. Computation of deduction u/s. 10AA by not including items that were excluded from export turnover from the total turnover - HELD THAT:- AO held that these expenses would fall under the category of delivery of articles or tools or computer software outside India or expenses incurred in providing the technical services outside India as per explanation 1(i) to Section 10AA. Accordingly he took the view that these expenses have to be reduced from export turnover while computing deduction u/s. 10AA of the Act. However, he held that these expenses are not required to be deducted from "total turnover'. Accordingly, the AO recomputed the deduction u/s. 10AA. DRP, in principle, agreed with the view taken by AO.DRP noted that the decision rendered by the jurisdictional Karnataka High Court in the case of CIT vs. Tata Elxsi Ltd. & others [2011 (8) TMI 782 - KARNATAKA HIGH COURT] is in favour of the assessee and SLP is pending before Hon'ble Supreme Court. Accordingly, the Ld. DRP directed the AO to keep the disallowance made u/s. 10AA of the Act as protective addition till the final outcome of the SLP filed in Hon'ble Supreme Court. We heard the parties and perused the record. This controversy has since been settled by Hon'ble Supreme Court in the case of HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT]. Accordingly, we restore this issue to the file of AO with the direction to follow the decision rendered by Hon'ble Supreme Court in the above said case - Appeal filed by the assessee is treated as allowed for statistical purposes.
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