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2020 (5) TMI 305 - AT - Income TaxTP Adjustment - selection of MAM - CUP method against the TNMM as the most appropriate method - HELD THAT:- Hon’ble Jurisdictional High Court of Punjab & Haryana in NISSIN BRAKE INDIA PVT. LTD. . [2020 (1) TMI 1190 - PUNJAB AND HARYANA HIGH COURT] held that there is no need to deviate from TNMM followed by the assessee to CUP method followed by the revenue. Hence, keeping in view the judgment above we hereby direct the revenue to determine adjustments considering the TNMM as the most appropriate method. TPA - Comparable selection - rejection of one comparable selected by the assessee in their TP documentation and selection of five comparables by the revenue in their TP study - HELD THAT:- Since, the business of the assessee is “ core auto components”, we hold that it cannot be compared with an entity which is in the business of “ non- core auto components”. Capacity Utilization Adjustment - HELD THAT:- We have gone through the record and the orders of the Tribunal for the earlier three assessment years i. e. assessment yeas 2010-11, 2012-13 and 2013-14 wherein the capacity utilization adjustment has been duly granted. Keeping in view the industrial standing of the comparable, we hereby direct that the same benefit may be accorded in the instant year. Brought forward losses - HELD THAT:- AO is directed to consider relief on account of brought forward losses as per the Income Tax Act after taking into consideration the business losses and unabsorbed depreciation as per the earlier returns filed by the assessee.
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