Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 324 - AT - Income TaxTP Adjustment - Comparable Uncontrolled Price (CUP) method as applied by the assessee to be the most appropriate method - HELD THAT:- On a perusal of the material placed before us, we find that while deciding identical issue in assessee’s own case in assessment year 2004–05 [2012 (4) TMI 260 - ITAT MUMBAI ] the Tribunal has accepted the benchmarking done by the assessee under CUP method and has also held that the profit sharing ratio of 50:50 is prevalent both in respect of agreement entered into between group companies with unrelated parties as well as the assessee. - Decided in favour of assessee. Addition made to the Low gross profit - after rejecting the books of account, the Assessing Officer computed the gross profit rate and proposed additions - HELD THAT:- There is a specific finding by learned DRP that neither the Assessing Officer has made any adverse remark alleging non–furnishing of any details by the assessee nor regarding the maintenance of regular books of account by the assessee. It also appears from record, the Assessing Officer has examined the books of account and the materials furnished before him and has not made any adverse remark regarding the correctness or completeness of the accounts. Simply relying upon a statement recorded from the Vice President of the company, the Assessing Officer has concluded that the assessee might have manipulated its profit. Thus, as could be seen from the material on record, there is no contrary evidence brought on record by the Assessing Officer to establish that the books of account maintained by the assessee are unreliable or the assessee has manipulated them. It is also a fact on record that the parties with whom the assessee has entered into transactions are not related parties. None of the factual finding rendered by learned DRP has been controverted before us with corroborative evidences. Thus, it is very much clear, the additions on account of low gross profit has been made purely on conjecture and surmises without any supporting evidence. That being the case, we do not find any reason to interfere with the decision of learned DRP on the issue
|