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2023 (2) TMI 903 - AT - Income TaxTP adjustment in respect of franchise fee - prudence of expenditure - TPO at threshold has discarded payment of franchise fee on the ground of need of such payment - HELD THAT:- TPO has exceeded his jurisdiction in making such observation. TPO cannot step into the shoes of assessee to decide prudence of expenditure. The TPO failed to examine the documents furnished by assessee to benchmark the transaction by applying one of the methods specified in Chapter-X of the Act. Thus, in the facts of the case we hold that the findings of the TPO/Assessing Officer in making adjustment in respect of franchise fee are unsustainable. The adjustment is deleted and ground of appeal is allowed.
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