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2022 (3) TMI 1438 - ITAT MUMBAITP Adjustment - selection of profit level indicator(PLI) basis being operating profit by value add expenses instead of operating profit by total cost adopted by the TPO and DRP - HELD THAT:- As per ITAT for the A.Y 2015-16 selection of operating profits by value added expenses has to be considered as there is no change in assessee’s business model. We follow the judicial precedence and considering the facts presented in the course of hearing restore the disputed issue to the file of the AO / TPO with similar directions in respect of bench marking and adopting of PLI and allow the grounds of appeal for statistical purposes. Restrictions of TP adjustments to the extent of value of international transactions - HELD THAT:- We considering the similar line of working in assessee’s own case for the A.Y 2015-16 and directions restore the disputed issue to the file of the A.O to consider the proportionate adjustments in respect of the income to the extent of international transactions and allow the ground of appeal for statistical purposes. Inclusion of comparables - HELD THAT:- We find the comparable was functionally accepted in earlier A.Y 2011-12 & 2012-13 and for A.Y 2013-14 it was rejected as it has some extraordinary event and no segmental information was available and further the TPO has rejected the comparable on the export operations. We considering the facts, submissions, information and judicial decisions in the assessee’s own case and the department accepted it as comparable in the earlier years as discussed. We direct the TPO to include the comparable in determination of ALP. Since, one comparable is included and there are no arguments made by the Ld.AR on other comparables hence they are left open and allow the grounds of appeal for statistical purposes. Exclusion of comparable Om Logistic Ltd. - AR submitted that the comparable company is engaged in the transportation and logistics services of vehicle and tangible assets - We direct the TPO to exclude the comparable in determination of ALP and allow the ground of appeal of the assessee. Claim of depreciation on goodwill resulting from acquisition of business unit - HELD THAT:- As we follow the judicial precedence, and direct the Assessing officer to allow the claim of depreciation on good will and allow the grounds of appeal in favour of the Assessee.
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