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2018 (12) TMI 986 - AT - Income TaxTPA - International transaction relating to reimbursement of expense to its Associated Enterprise [AE] - Held that:- As decided in assessee's own case no upward adjustment is proposed to the income of the assessee in relation to the international transaction which was the subject matter of 6 benchmarking. Hence, the upward adjustment of ₹ 13.07.20.653/- made in the original order for the expat support services u/s 92(A(3) is thus reduced to NIL. AO is requested to take the necessary action. Thus we are of the considered opinion that the transfer pricing adjustment of ₹ 6.63 crores deserves to be deleted. We direct accordingly. Disallowance of 10% of the total staff welfare expenses - Held that:- While deciding the objection raised by the assessee in respect of adhoc disallowance of 10%, the DRP has directed the Assessing Officer to delete the same by holding that the disallowance has to be on some basis. There is no dispute that the books of account of the assessee are audited and no specific defect has been pointed out by the Assessing Officer/TPO. Therefore, in our considered opinion, adhoc disallowance is unwarranted and deserves to be deleted as was deleted by the DRP in assessment year 2012-13 - decided in favour of assessee.
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