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2021 (6) TMI 616 - AT - Income TaxTP Adjustment - assessee has earned management fees from two of its Associates Enterprises - HELD THAT:- The said income has been credited in assessee’s Profit & Loss Account as other operating revenues under the head revenue from operations. The same is evident from Note-19 of assessee’s financial statements. Similar figure has been reported as earnings in foreign exchange (rendering services) in schedule annexed to and forming part of the Balance Sheet. Similar figure was noted by Ld. TPO while re-working segmental results which has already been enumerated by us in preceding para-4.1 of this order. Quite clearly, the said income stood credited to assessee’s Profit & Loss Account and form part of the assessee’s financial statements. The same has already been considered while computing assessee’s income. The assessee has debited Selling & Distribution Expenses forming part of the Balance Sheet. The break-up the same was already provided by the assessee in its submissions during appellate proceedings. This amount include inter-company service fees expense of ₹ 427.54 Lacs which after including foreign exchange difference of ₹ 56.20 Lacs comes to ₹ 483.74 Lacs. The assessee has remitted ₹ 483.74 Lacs after deduction of tax at source, the details of which have already been given by the assessee in the impugned order. The impugned amount as already forms part of assessee’s income and there is no concealment of income as alleged by Ld. CIT(A) in the impugned order. The figures in Form No.3CEB has been reported on ‘net basis’ which at the most, could be an inadvertent / bona-fide / oversight error. But on the given factual matrix, there would be no case to make impugned additions in the hands of the assessee. The Ld. CIT(A), without considering assessee’s submissions, erred in making enhancement in the hands of the assessee. Thus we have no hesitation in deleting the same.
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