Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 865 - AT - Income TaxTP Adjustment - rejecting the audited segmental accounts furnished by the Assessee by arbitrary allocating operating specific expenses on the basis of revenue earned by the assessee in each segment which were originally allocatd by the assessee on sound allocation keys - Whether AO/Ld. TPO erred in considering the margin of the assessee in contract manufacturing segment as 1.79% as against the actual margin of 7.70%? - HELD THAT:- As there was no specific finding by Ld. DRP on this issue. Hence, in the interest of justice, it is appropriate to remit this issue to the file of Ld. DRP to give specific direction on the above issue raised by the assessee before Ld. DRP as well as before us. Inclusion and exclusion of certain comparables - HELD THAT:- We remit this issue to the file of Ld. DRP to specify the specific comparables which are to be included or excluded before the lower authorities. The lower authorities has to decide the issue afresh giving opportunity of hearing to the assessee. Corrected margins of comparable companies submitted by the Appellant - HELD THAT:- We have remitted the issue relating to the rejection of segmental financials and selection of comparables to the file of Ld. DRP for fresh consideration. This issue is also remitted to Ld. DRP to consider the correct margin of the comparables. Disallowance of expenditure towards Corporate Social Responsibility (“CSR”) u/s 80G - HELD THAT:- After hearing both the parties, we are of the opinion that the claim of the assessee has to be examined by the Ld. DRP on production of the requisite details by the assessee. DRP also directed to consider the order of the Tribunal in the case of First America (India) Pvt. Ltd. [2020 (5) TMI 187 - ITAT BANGALORE] wherein held that “assessee cannot be denied benefit of claim of deduction under Chapter VIA of the Act in relation to payments, which form part of CSR expenses since that would lead to double disallowance, which is not the intention of legislature.” Accordingly, this issue is remitted to the file of Ld. DRP for fresh consideration. Expenditure incurred on Voluntary Retirement Scheme - HELD THAT:- The assessee has not furnished the full details other than name of the person to whom the payment has been made in accordance with Voluntary Retirement Scheme and not produced the terms and conditions of this scheme and documentary evidence. Hence, the claim of the assessee is rejected. In view of the above findings, we remit this issue to the file of Ld. DRP with the direction to the assessee to produce necessary details as sought by the Ld. DRP. Disallowance u/s 14A - HELD THAT:- If there is no exempted income, there cannot be any disallowance u/s 14A read with Rule 8D of the I.T. Rules. Accordingly, we remit this issue to the file of Ld. DRP to examine the file of financials of the assessee and if there is no exempted income, there cannot be any disallowance u/s 14A read with Rule 8D of the I.T. Rules or if there is no exempted income, there cannot be any disallowance. Disallowance in respect of Indian Accounting Standard adjustment of preference shares - HELD THAT:- The assessee has made claim on this count in revised return. The Ld. DRP has directed the AO to verify the validity of revised return so claimed to have been filed by the assessee and consider the same if the revised return is valid return as per the provisions of the Act for computing total income of the assessee. In our opinion, appellate authority could entertain the claim of assessee, even though no revised return is filed. Hence, we direct the Ld. DRP to examine this issue afresh.
|