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2015 (12) TMI 101 - ITAT PUNE

2015 (12) TMI 101 - ITAT PUNE - TMI - Transfer pricing adjustment - assessee challenged Transfer Pricing Officer (TPO) not allowing the adjustment of +/- 5% while computing the addition in the hands of assessee on account of arm's length price of the international transactions entered into by the assessee - Held that:- In view of proviso to section 92C(2) of the Act, no adjustment is to be made since the variation between the price paid in respect of the international transaction and the arm's l .....

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Tribunal in Thyssenkrupp Industries India (P.) Ltd. Vs. Addl.CIT (2013 (11) TMI 930 - ITAT MUMBAI -). In view thereof, the ground of appeal raised by the assessee is allowed - Decided in favour of assessee.

Excise duty paid / payable - whether was not part of the total turnover within the meaning of section 10B? - Held that:- The issue raised before us is identical to the issue before the Tribunal in assessee's own case relating to assessment year 2007-08 and following the same parity .....

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cross appeals filed by the assessee and the Revenue are against the order of CIT(A), Aurangabad, dated 27.12.2010 relating to assessment year 2005-06 against order passed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act'). 2. The cross-appeals filed by the assessee and the Revenue were heard together and are being disposed of by this consolidated order for the sake of convenience. 3. The assessee in ITA No. 254/PN/2011 has raised the following grounds of appeal :- 1. .....

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ether on the facts and in the circumstances of the case, the CIT(A) has erred by allowing the appeal of the assessee and considered excise duty paid/ payable by the assessee as not part of the total turnover within the meaning of Section 10B, following the decision of the Hon'ble High Court, Bombay in the case of CIT Vs. Sudarshan Chemical Industries Ltd., (245 ITR 769) ignoring the fact that the decision of Sudarshan Chemical Industries was given in relation to deduction u/s.80HHC and does .....

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ted in clause (iii) of explanation (2) of section 10B for the purposes of section 10B 3) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has committed an error in allowing the deduction from total turnover u/s.10B by imputing deductions into the provisions of the Act, which are explicit in not allowing such deductions. 4) Whether or not excise duty sales tax recovered in foreign exchange have to be excluded from the total turnover as defined in clause (iii) of explan .....

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considered for the entire business of the assessee Company. b) There is error in assessment of income while considering deduction/exemption under section 10B of the Income Tax Act, 1961, sales turnover, expenses and profits of international outsourcing activity has not been excluded and that solely of the Export Oriented Undertaking has not been considered. c) The appellant craves leave to add, amend or alter any of the grounds oc) of appeal. 6. The learned Authorized Representative for the asse .....

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ed by way of additional grounds of appeal. When confronted, the learned Authorized Representative for the assessee fairly admitted that the issue was factual and as per the ratio laid down by the Hon'ble Supreme Court in National Thermal Power Co. Ltd. Vs. CIT (supra), only legal issue can be admitted as additional ground of appeal. In view thereof, we dismiss the additional grounds of appeal raised by the assessee. 7. The assessee is in appeal before us only on the issue of the Transfer Pri .....

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77; 3,58,878/- to be made to the value of international transaction relating to finished goods trading exports, to arrive at arm's length price of the international transaction. By way of ground of appeal No.2, the assessee has raised the issue that the authorities below have erred in applying TNMM method instead of RMP method. However, before us, the only grievance of the learned Authorized Representative for the assessee was that the TPO had not allowed +/- 5% adjustment before making the .....

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m's length price determined by taking results of comparables cases does not exceed 5% and, in case such variation is more than 5%, then no such benefit can be allowed on standard basis. We find support from the ratio laid down by Mumbai Bench of Tribunal in Thyssenkrupp Industries India (P.) Ltd. Vs. Addl.CIT (2013) 33 taxmann.com 107 (Mumbai - Trib.). In view thereof, the ground of appeal raised by the assessee is allowed and the ground of appeal No.2 raised by the assessee is dismissed. 09 .....

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assessee's own case in ITA No.1215/PN/2011 relating to assessment year 2007 -08, which was heard along with bunch of appeals with lead order in ITA No.1206/PN/2011. The Tribunal vide order dated 25.02.2015 held that Excise duty is to be excluded from total turnover while computing deduction under section 10B of the Act. The relevanturnover relevant finding of the Tribunal vide paras 46 and 47 is as under:- "46. We find that the issue is squarely covered by the ratio laid down by the Ho .....

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