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2017 (4) TMI 1007 - ITAT CHENNAITPA - Adjustment made by the assessee for the non-operational expenses - Held that:- The assessee's business module cannot be straightway compared with other comparables, unless the extraordinary item of expenditure excluded while comparing so as to arrive at correct margin of profit. It was brought to our notice that TPO had accepted the pricing pattern of the assessee in the succeeding assessment year namely 2013-14 & 2014-15 and there was transfer pricing adjustment in these assessment years. It is also brought to our notice that there is a steady increase in revenue generated by the assessee in the subsequent assessment year on account of new project without any change in pricing pattern of the project with the same A.E. In such circumstances, it is not appropriate to ignore the extraordinary items of expenditure in the form of employee salary cost and consultancy charges incurred by the assessee in the assessment year under consideration. Hence, we are of the opinion that an adjustment has to be given towards this, while computing the ALP as once the adjustment is made, the PLI would be higher than that of comparable arrived at 26%. In our opinion there cannot be any upward adjustment of ₹ 2.64 crores to the value of international transaction in the assessment year under consideration. Accordingly, the ground taken by the assessee is allowed.
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