9911796707
TMI Blog2011 (7) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has raised as many as 37 grounds of appeal, the learned counsel for the assessee Shri K.R. Pradeep at the time of hearing submitted that only two issues are arising for adjudication. He submitted that one issue is relating to reallocation of trading expenses to 10A and non-10A units and the other issue is relating to the determination of Arm Length Price (ALP) by Transfer Pricing Officer (TPO), which has been confirmed by the DRP. 3. As regards the first issue relating to reallocation of trading expenses, the learned counsel for the assessee submitted that the assessee is eligible for deduction under section 10A of the Income-tax Act and while computing the deduction under section 10A of the Income-tax Act, the Assessing Officer had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 18-11-2005 in assessee's own case for the assessment year 1999-2000 has allowed assesse's appeal by observing as under : "The next issue is regarding exemption under section 10A of the Act. The assessee company claimed exemption under section 10A of Rs. 18,44,03,863. The assessee also submitted details of turnover in respect of four different units enjoying exemption under section 10A of the Income-tax Act. The assessee had debited expenses of Rs. 29 crores before disclosing profit in respect of 10A units. The Assessing Officer asked the assessee to explain as to how the expenses were which has been quoted by the Assessing Officer in his order. Finally, the Assessing Officer did not accept the allocation of expenses made by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities (i.e., the activities the income from which are not exempt under section 10A) and sought to increase the income from exempted activities." In view of the facts and circumstances, as narrated above, I feel that any bifurcation of expenses of the Others division must necessarily allocate expenditure to the 10A units on the basis of respective salary costs. Therefore, the allocation made by the assessee company is fallacious as it strives to artificially enhance the exempted income and thereby reduce the taxable income through statistical jugglery." Thereafter the Assessing Officer computed his own allocation of expenses resulting in reduction of deduction under section 10A of the Act and increase of income by Rs. 47,16,283 When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y filing its written submissions before the TPO. However, the TPO has failed to consider any of these objections and has determined the ALP and made the adjustment. 9. Aggrieved by this, the assessee had preferred objections to the DRP and the DRP has summarily accepted the findings of the TPO without considering the objections of the assessee in a judicious manner. The learned counsel for the assessee while challenging the orders of the authorities below on the ground of non-consideration of the objections raised by the assessee by the TPO as well as DRP also further submitted that the method of computing the ALP was also under dispute from the earlier years and the Tribunal in the assessee's own case in the earlier years had held that R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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