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2023 (7) TMI 648 - AT - Income TaxTP Adjustment - aggregation to distribution segment with that of assembly segment - HELD THAT:- For assembly, the assessee has set up a full scale assembly facility, including, deployment in the plant & machinery, land, building and other tangible assets. Whereas in the case of import of finished products, products are sold to third party customers without making any value-addition and the assessee primarily engages in activities of storage and distribution. In our considered opinion, the submission of the assessee is justified that the AO has wrongly aggregated the assembly segment with distribution segment. We direct that such aggregation is not permissible in the facts and circumstances of the case as discussed above. We direct accordingly. Treatment of outstanding receivables from AE as unsecured loans and imputing an interest thereon - HELD THAT:- As in assessee’s own case for Assessment Year 2014-15 [2022 (5) TMI 1567 - ITAT DELHI] on the same issue ITAT has deleted the similar adjustments as assessee in not charging interest from both the AE and Non AE debtors and the delay in realization of the export proceeds - Thus relying on M/s. Indo American Jewellery Ltd. [2013 (1) TMI 804 - BOMBAY HIGH COURT] as neither interest has been charged nor paid, we hereby allow the appeal of the assessee on this ground.
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