Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1134 - AT - Income TaxTP Adjustment - MAM selection - TNMM or CUP method - TNMM method selected by the appellant to benchmark transaction - HELD THAT:- We hold that there was no justification in rejecting the TNMM method applied by the assessee as in the preceding year. Since as per the same computation the assessee's margin was found to be at arm's length.We set aside the order of authorities below and decide the issue in favour of the assessee. Since we have already allowed the assessee's appeal on this issue. For lack of justification in changing the method of bench marking we are not dealing with the arguments on other aspects of merits of application of CUP method computation of arm’s length price by the Transfer Pricing Officer in this case. Decided against revenue. Addition u/s 69C - assessee was not able to establish the purchases - HELD THAT:- The assessee has possession of the purchased documents and the payment was made through banking channels. So, this addition cannot be sustained u/s 69C. The ld. Counsel has submitted the catena of judgments with corelated fact of the case. The identity was proved as payment was made by banking channel. Possession of invoice has never been challenged. We find no infirmity in the transaction of assessee. Accordingly, the addition made by the AO is liable to be quashed. Decided against revenue. Disallowance of weighted deduction u/s 35[2AB] - difference between the amount claimed in the return of income and has approved by the DSIR in Form No. 3CL - HELD THAT:- In the terms of provision 35(2AB) needs to be approved by DSIR.Research and Development Facility is approved and prescribed by the authority, DSIR in Form 3 CM then the expenses incurred by the assesseehave to be allowed u/s 35(2AB) and the same cannot be curtailed. To the quantum approved in Form No. 3CL in the pre amendment period. We are fully relied on the order of the coordinate bench. The first step was recognition of facility by the prescribed authority and entering an agreement between the facility and the prescribed authority. The ld. AO cannot curtail the expenses which was contributed to R & D in pre amended period. Accordingly, the addition made by the ld. AO amount is liable to be quashed. - Decided against revenue.
|