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2018 (1) TMI 1042 - AT - Income TaxDisallowance of the depreciation claimed on intangibles being excessive - Held that:- Assessee company is engaged in providing transactional support services to its parent company. In January, 2013 the assessee has purchased intangible assets like trademarks, brand, goodwill, technical know-how, etc. from Cosme group based in Goa. With the purchase of intangible assets, the assessee has entered into manufacturing, marketing and distribution of branded pharmaceutical products in India and some other countries. The cost of the assets acquired in January, 2013 was amounting to ₹ 481,87,28,153. Assessee claimed depreciation, but it was not allowed by the AO on the ground that valuation report was not furnished, whereas this claim of depreciation was allowed by the AO in the succeeding year i.e., AY 2014-15. We are of the view that once the AO has allowed the claim in the succeeding year, the same should also have been examined in the impugned assessment year. Set aside the order of the AO and restore the matter to the AO to examine the claim of depreciation in the light of valuation report furnished by the assessee, after affording opportunity of being heard to it. TPA - comparable selection criteria - assessee has sought exclusion of 8 comparables on the ground of turnover filter and functional dissimilarity - Held that:- The issue of functional dissimilarity was not properly examined by the TPO.We therefore set aside the assessment order and restore the issue to the AO/TPO to re-examine the issue in the light of assessee’s contentions with respect to exclusion of 8 comparables
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