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2016 (9) TMI 1649 - ITAT CHENNAITP Adjustment - Disallowance of pre-commencement expenditure - admission of the additional evidence - Whether APA [Advance Pricing Agreement] was crucial in determining the ALP of the international transactions of the assessee?- HELD THAT:- APA has considerable bearing for the years under appeal, since prima facie, the rollback of four years which went to assessment year 2011- 12, was curtailed to three years. Obviously, the curtailment was allowed in the APA after considering the submissions of the assessee that it had become a contract manufacturer only in financial year 2010-11 pursuant to labour upheaval. Ld TPO in the orders for all the impugned assessment years had considered assessee to be a contract manufacturer and in his order for assessment year 2009-10, this is specifically mentioned at page 69 of the order. Nature of business of the assessee would have considerable bearing on the Arm’s Length Pricing study of the international transactions with its AEs. APA having been signed on 24.5.2016, assessee had no occasion to produce it before lower authorities. We are, therefore, of the opinion that the additional evidence has to be admitted. We, therefore, admit the additional evidence, set aside the orders of the lower authorities and remit all the issues back to the AO/TPO for consideration afresh in accordance with law. Appeals of the assessee for all the years are allowed for statistical purposes.
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