Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 753 - AT - Income TaxComparison - Arms length price Comparability of price with the chosen company - whether Assessee is in merely functional advisory consultancy service without any risk to its sister companies Held that:- Apropos assessee's contention that assessee is in merely functional advisory consultancy service without any risk cannot be accepted as in preceding two years the ITAT [2012 (10) TMI 779 - ITAT, DELHI] has held that it is in marketing services which carry elements of risk and the assessee's services are to be treated as marketing services. Relying upon the decision in the case of MCI Com India (P.) Ltd[2012 (10) TMI 790 - ITAT DELHI], it has been held that companies like EIL, Rites, Wapsos and TCE are engineering companies and provide end to end solutions and therefore they cannot be compared with those assessee who were into providing marketing support services to the parent company. They were held to be functionally not comparable with thee engineering companies - Therefore, they are to be excluded - Matter to go back to the file of AO /TPO who will determine the T.P. adjustments by excluding Vapi and WAPCOS comparables. Rate of depreciation on computers Assessee charged depreciation @ 60% - Held that:- It is well settled that computers and peripherals are eligible for depreciation @ 60%. Besides assessee's opening WDV cannot be disturbed.
|