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2023 (4) TMI 175 - ITAT MUMBAITP adjustment - reimbursement of the out of pocket expenses - HELD THAT:- Appellant had not furnished third-party invoices or other supporting documents for 22% out of pocket expenses reimbursed. TPO/Assessing Officer has not pointed out any defect/discrepancy in the bills/supporting documents furnished .by the Appellant as the same have been examined and accepted. Accordingly, adopting the reasoning given by the Tribunal in the order of the Tribunal for the Assessment Year 2008-09 [2022 (11) TMI 681 - ITAT MUMBAI] and following the decision of the Tribunal for the Assessment Year 2010-11 [2022 (11) TMI 1341 - ITAT MUMBAI] we delete the transfer pricing addition made in relation to reimbursement of out of pocket expenses to AE. Accordingly, Ground No. 2 raised in the appeal is allowed TP Adjustment - reimbursement of software maintenance expenses (connectivity charges) - HELD THAT:- In view of the fact that transfer pricing addition in respect of identical reimbursements to AE having been deleted by the Tribunal in appeal for the Assessment Year 2010-11[2022 (11) TMI 1341 - ITAT MUMBAI] we deleted the disallowance by respectfully following the aforesaid decision of the Tribunal. Disallowance of lease rental payment in terms of 'Agreement For Provision For Warehousing Services' - HELD THAT:- A perusal of financial statements for the relevant previous year shows that identical disclosures have been made. Payments of lease rentals have also been made in terms of the same agreement. Accordingly for Assessment Year 2011-12 also the issue is remanded back to the file of the Assessing Officer for adjudication afresh after giving the Appellant a reasonable opportunity of being heard. In view of the aforesaid directions Ground disposed off. Computation of Book Profit u/s 115JB - DR submitted that while passing the Final Assessment Order AO has not reduced the brought forward loss from the net profits shown in the Profit & Loss Account while computing Book Profits u/s 115JB - HELD THAT:- A perusal of the Profit and Loss Account pertaining to the financial year ending on 31.03.2011 relevant to the Assessment Year 2011-12 shows that the Appellant had brought forward losses. Further, in Notes to Return enclosed with the Computation of Taxable Income, the Appellant had also furnished details of brought forward loss and depreciation. As per Explanation 1 to Section 115JB of the Act, for computing Book Profits, the amount of profits shown in Profit & Loss Account are to be reduced by the amount of unabsorbed losses or depreciation whichever is less as per the books of accounts. Assessing Officer is directed to verify the amount of unabsorbed losses and depreciation as per the books of accounts and compute Book Profits as per Section 115JB read with Explanation 1.
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