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2020 (9) TMI 911 - AT - Income TaxTP Adjustment - determination of Arms' Length Price (ALP) in respect of the international transaction of rendering ITeS to the AE - Comparable selection - distinction between the KPO & BPO - HELD THAT:- Assessee in engaged in the business of provision of Information Technology Enabled Services (ITES) to its wholly owned holding company thus companies functionally dissimilar with that of assessee need to be deselected from final list. Companies providing high end services cannot be compared to companies providing back office support services. See MAERSK GLOBAL CENTRES (INDIA) PRIVATE LIMITED VERSUS ASST. COMMISSIONER OF INCOME TAX- CIRCLE 6 (3) , MUMBAI. [2014 (3) TMI 1159 - ITAT MUMBAI]. Depreciation on capital assets - Disallowance on the basis that no tax has been deducted at source while making payment for such asset - argument of assessee that depreciation is a statutory allowance and it cannot be disallowed by invoking the provisions of section 40a(i)/(ia) - HELD THAT:- The question whether in such circumstances, provisions of section 40a(i)/(ia) can be invoked has already been decided by the Mumbai Tribunal in the case of SKOL Breweries Ltd. [2013 (1) TMI 623 - ITAT MUMBAI] as held The deduction under section 32 is not in respect of the amount paid or payable which is subjected to TDS; but it is a statutory deduction on an asset which is otherwise eligible for deduction of deprecation. Depreciation is not an outgoing expenditure and therefore, the provisions of Section 40(a)(i) are not attracted on such deduction. Also see M/S MARK AUTO INDUSTRIES LTD. [2013 (1) TMI 448 - PUNJAB AND HARYANA HIGH COURT] - Decided against revenue.
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