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UCB India Pvt. Ltd. Versus The ITO 7 (3) -3, Aayakar Bhavan, Mumbai and vice-versa

Disallowance of sales promotion expenses - Held that:- Respectfully following the decision of the Co-ordinate Bench in assessee’s own case, we delete the adhoc disallowance made by the Assessing Officer in respect of gifts articles - Eligible profit for deduction u/s. 80HHC - Disallowance of bank interest as business income and excluding the same while computing the deduction u/s. 80HHC - Held that:- In the case on hand, the assessee has received interest on current account balances. The int .....

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(baa) to Explanation is accepted and this is also the view of the Special Bench in the case of Lalsons Enterprises (2004 (2) TMI 294 - ITAT DELHI-E ) which was approved by the Supreme Court in the case of ACG Associates Capsules (2012 (2) TMI 101 - SUPREME COURT OF INDIA). Thus, we direct the Assessing Officer to exclude only the net interest. - Upholding deduction of 90% of (a) insurance claim (b) Miscellaneous income (c) Service charges (d) Cenvat credit (e) Extraordinary income as per cl .....

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e is not derived from the business operations of the assessee therefore, we uphold the action of the Assessing Officer in reducing 90% of such income while computing deduction u/s. 80HHC of the Act. - Coming to Cenvat credit, it is held that is derived from the industrial undertaking therefore cannot be treated as other income and cannot be reduced 90% of such income while computing deduction u/s. 80HHC. - Coming to extraordinary income, it is the submission of the Ld. Counsel for the as .....

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E-connectivity charges - revenue v/s capital - Held that:- On going through the agreement entered into by the assessee, we find that assessee has not acquired any software from its parent company but assessee is paying activity charges for the facility of access/usage of various applications, intranet websites, emails, global resources etc for day today running of the business. We do not find any acquisition of software by the assessee by payment of this activity charges. We also do not find any .....

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MAM is directed to be changed following the decision of the Hon'ble ITAT in appellant's own case for A.Y. 2002-03 and 2003-04. However, the Assessing Officer/TPO would be at liberty to factually verify the benchmarking analysis carried out by the appellant under TNMM on transaction to transaction basis in consonance with directions of IT A T while giving effect to this order. This ground of appeal is therefore allowed subject to verification as above”. As seen from the above, the Ld. CIT(A) ado .....

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SHRI RAJENDRA ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER Assessee by : Shri M.P. Lohia Shri Pranay Gandhi Shri Saurabh Deshpande Revenue by: Shri N.K. Chand O R D E R PER C.N. PRASAD, JM: These bunch of appeals are filed by the assessee and the Revenue against the orders of the Ld. CIT(A)-15 for the Assessment Years 2004-05, 2005-06 and 2007-08. As these appeals were heard together, they are disposed of by this common order for the sake of convenience. ITA No. 6681/M/2013 -A.Y. 200 .....

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articles. These expenses were incurred towards purchase of various gift items such as ball pens, towels and tissues, wallets, gift sets, household appliances and watches, besides sponsoring Doctors meet at Phuket where the amount of ₹ 17,17,785/- was expended. The Assessing Officer required the assessee to explain and justify the expenditure on gift article and sponsored trip and explain as to how it is related to the business of the assessee which consists of trading and manufacturing of .....

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that these expenses are incurred by the marketing team for various activities from time to time and market performance such as doctors meeting, booking of conference and enrolling doctors for medical conferences, printing of educational material for sales representative, buying of promotional gifts of doctors. Therefore, it was contended that all these expenses are only for the purpose of business of the assessee. However, the Assessing Officer held that the assessee failed to show that this am .....

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t of amounts spent on gift articles in the preceding years. This disallowance was confirmed by the Ld. CIT(A). 4. The Ld. Counsel for the assessee submits that in the earlier assessment years i.e. Assessment Years 2002-03 and 2003-04 in ITA Nos. 428 & 429 of 2007, the Tribunal had held that the adhoc disallowance made by the Assessing Officer is based on mere surmises and presumptions therefore deleted the disallowance. The Ld. Counsel for the assessee submits that copy of the Tribunal order .....

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Hon ble CIT(A) confirmed the disallowance holding that the same is prohibited by MCI regulations and should be disallowed in view of the CBDT Circular No. 5 of 2012 dated 1st August, 2012. The Ld. Counsel submits that Medical Council of India s notification preventing the Pharma Companies in gifting articles to the medical practitioners notified in the official gazette on 10.12.2009 and is effective from this date is not applicable to the Assessment Year under consideration. Referring to page-5 .....

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lar of CBDT shall be prospectively applicable w.e.f 1st August 2012. Therefore, the Ld. Counsel submits that since the Assessment Year under consideration is Assessment Year 2004-05, the CBDT Circular shall not be applicable. 5. The Ld. Departmental Representative Shri N.K. Chand appearing on behalf of the Revenue vehemently supports the order of the Assessing Officer and the Ld. CIT(A) in making adhoc disallowance of 10% in respect of gift articles given to the medical practitioners has not bee .....

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-04 which pertains to a disallowance of a percentage out of the total sales promotion expenses claimed by the assessee. During the assessment year 202-03 the assessee claimed a sum of ₹ 3,93,15,069 as expenses in connection with sales promotion activity. Out of this, an amount of ₹ 4,48,975 pertained to purchase of various gift items for doctors. For the Assessment Year 2003-04 the figure were ₹ 4,43,19,884/- being expenses connected with sales promotion activities and amount o .....

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he company products. It was submitted that the gift items are distributed through these medical representatives and the sales promotion expenses incurred were for the purpose of business to promote sales and has to be allowed. The undisputed fact was that all the gift articles bore the logo of the company and were useful for branch regulating. Samples of these gift articles were produced before the assessing officer. The assessing officer directed the assessee to submit details of recipients of .....

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nditure. Only the quantum is being restricted on adhoc basis. In one year an adhoc 20% disallowance is made and in the other year an adhoc 10% of the disallowance is made. The primary reason for making such disallowance is that the assessee has not furnished details of recipients of the gift articles. The assessing officer presumes that there might be an element of non-business use. The assessee explains that it distributes its product through various medical representatives who inter......... g .....

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s. The assessee submits that it is an internal procedure of approval and a copy of the same is attached as Annexure-II. Thus, submissions of the assessee on facts are not controverted by the revenue. There is an internal control procedure in place. On this factual matrix we are of the considered opinion that the adhoc disallowance is not based on firm legal ground. There is no dispute that the expenditure incurred on gifts was for the purpose of business. The gifts display the logo of the assess .....

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d 1.8.2012 is applicable with effect from 1.8.2012 relevant to Assessment Year 2013-14. While holding so, it was observed as under: We have considered rival contentions and found that receiving of gifts by doctors was prohibited by MCI guidelines, giving of the same by manufacturer is not prohibited under any law for the time being in force. Giving small gifts bearing company logo to doctors does not tantamount to giving gifts to doctors but it is regarded as advertising expenses. As regards spo .....

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4, whereas the relevant assessment year under consideration is 2010-2011 and 2011-2012. Accordingly, we do not find any merit in the disallowance so made by the AO in both the assessment years under consideration . Respectfully following the decision of the Co-ordinate Bench in assessee s own case, we delete the adhoc disallowance made by the Assessing Officer in respect of gifts articles. Ground No. 1 is allowed. 8. The second ground in assessee s appeal is that the Ld. CIT(A) erred in upholdin .....

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on the decision of Hon ble Bombay High Court in the case of India Supply Jewels Ltd. (284 ITR 389) has held that interest on current account is assessable as business income. He further submits that the Co-ordinate Bench relying on the decisions in the case of Lalsons Enterprises (89 ITD 25 (SB)] and Sriram Power Equipment held that only the net interest has to be eliminated under clause (baa) of Explanation to Sec. 80HHC of the Act. The Ld. Counsel submits that the Hon ble Supreme Court in the .....

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r words, it was held that first degree source is not established in so far as interest on current account is concerned therefore the same was excluded from computation of deduction u/s. 80HHC of the Act. 10. The Ld. Departmental Representative vehemently supports the orders of the lower authorities and further places reliance on the decision of the Hon ble Supreme Court in the case of Liberty India (supra) and submits that interest on current account balance is not income derived from business o .....

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iness income. Further the Tribunal directed the Assessing Officer to eliminate only the net of interest following the Special Bench decisions in the case of Lalsons Enterprises Vs DCIT 89 ITD 25 (supra) as well as decision in the case of CIT Vs Ram Honda Power Equipment 289 ITR 475 (supra). However, we find that Jurisdictional High Court in the case of CIT Vs Swani Spice Mills Pvt. Ltd. (332 ITR 288) after analyzing various decisions of various High Courts and Apex Court including its earlier de .....

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l for classification as business income. This is particularly so in a situation where the business of the assessee does not consist in the investment of funds. Where the assessee engages in an independent line of business, interest earned on deposits cannot be regarded as falling under the head of profits and gains of business or profession. Such income would fall for classification as income from other sources. In applying the provisions of Sec. 80HHC(1), the Legislature has made a specific pro .....

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t balances cannot be said to be derived on business of exports. Earning of interest income from current account balances cannot be construed to be a direct and proximate nexus with the business of exports. Respectfully following the said decision we hold that such interest income cannot be considered as income derived from business for the purpose of computing deduction u/s. 80HHC of the Act. However, the alternative argument of the assessee that only the net interest should be eliminated under .....

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at credit (e) Extraordinary income as per clause (baa) of Explanation to Sec. 80HHC of the Act. 14. The Ld. Counsel for the assessee submits that the Assessing Officer held that deduction u/s. 80HHC of the Act is available only on profits derived from export of goods therefore the above said amounts cannot be said to be derived from export business and thus 90% of such amounts have to be excluded while computing deduction u/s. 80HHC of the Act. The Ld. Counsel for the assessee submits that the A .....

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eme Court in the case of Liberty India Vs CIT (317 ITR 218). 14.1. With reference to the Insurance amount of ₹ 3,53,385/-, the Ld. Counsel for the assessee submits that insurance claim against various operating losses/breakages at the factory and distribution stages. These are the salvaged value of operational losses and relate to the business operations of the assessee. Drawing our attention to the decision in the case of Pfizer Ltd (330 ITR 62), it was held that insurance claim form part .....

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sion of Ahmedabad Bench in the case of Arvind Fashions Ltd. Vs ACIT (37 SOT 369) the Ld. Counsel for the assessee submits that 90% of such amount should not be reduced from business income while computing deduction u/s. 80HHC. 14.3. Coming to the service charges of ₹ 3,21,836/- he submits that in connection with the reimbursement of the shared cost charged by the assessee to its group company UCB Malaysia and this was related to employee salary and office administrative charges provided by .....

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g to Cenvat credit, the Ld. Counsel for the assessee submits that assessee follows inclusive method of accounting in respect of accounting of excise duty. While excise duty paid on raw materials purchased is added to purchase cost of raw material, the amount of excise duty availed as cenvat credit is credited to the profit and loss account under the head other income . The Ld. Counsel for the assessee submits that cenvat credit amount has been credited to profit and loss account instead of showi .....

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e from its industrial activities. Therefore, the Ld. Counsel for the assessee submits that 90% of such amount should not be reduced from business income while computing deduction u/s. 80HHC of the Act. 14.5. Coming to extraordinary income, the Ld. Counsel for the assessee submits that this amount pertains to the excess of assets over liabilities pertaining to resins and additives business of Solutia Chemicals India Pvt. Ltd., which was acquired by the assessee on a going concern basis from 1.6.2 .....

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from industrial undertaking for the purpose of considering as income for deduction u/s. 80HHC. Hence, he submits that 90% of such income have to be excluded by applying clause (baa) to Explanation to Section 80HHC of the Act. 16. We have heard both the parties and the case laws relied on by the assessee. In so far as insurance claim and sale of scrap is concerned, in our view, this income is generated from business and therefore 90% of such income cannot be reduced for the purpose of computing .....

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n u/s. 80HHC of the Act. Coming to Cenvat credit, we find that in the case of ACIT Vs The total Packaging Services in ITA No. 5364/M/09 for assessment year 2006-07 by order dt. 4.11.2011 held that the modvat credit is derived from industrial undertaking only for the purpose of computation of deduction u/s. 80IB of the Act while holding so, the Co-ordinate Bench held as under: We have heard the rival contention and carefully perused the relevant material on record. Undisputedly, the Modvat credit .....

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ce Act, 2006, the Government has amended the rates of excise duty and consequently, the excise duty on purchases of raw material by the assessee was reduced from 16% to 8%. Thus, only after the amendment vide the Finance Act 2006, the assessee was able not only to recover the full excise duty payable but also set off the Modvat credit earned in the earlier years. 5.1 It is not the case of the refund of excise duty in cash; but only a benefit of Modvat credit was available to the assessee, which .....

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ance in the contention of the ld DR. 6.1 On the issue whether this benefit of Modvat credit is the income derived from the industrial undertaking or not, the Hon ble Guwahati High Court in the case of Meghalaya Steels Ltd. (supra), has held as under: In so far as the second question is concerned, the Central excise duty refund claimed by the assessee is on the basis of an exemption notifications issued by the Ministry of Finance (Department of Revenue) being Notification No. 32 of 1999 and Notif .....

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. The Central Board of Excise and Customs in its circular dated December 19, 2002 clarified that the refund is not on account of excess payment of excise duty but is basically designed to give effect to the exemption and to operationalise the exemption given by the notifications. In that sense, the Central excise duty refund does not appear to bear the character of income since what is refunded to the assessee is the amount paid under the modalities provided by the Department of Revenue for givi .....

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ufacturing activity. The issue of payment of Central excise duty would not arise in the absence of any industrial activity. There is, therefore, an inextricable link between the manufacturing activity, the payment of Central excise duty and its refund. In the circumstances, we are of the opinion that question No. 2 must be answered in the affirmative in favour of the assessee and against the Revenue. 6.2 The Hon ble High Court has decided the issue in favour of the assessee after considering the .....

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uting deduction u/s. 80HHC. 16.1. Coming to extraordinary income, it is the submission of the Ld. Counsel for the assessee that this amount is not income at all but should go to capital reserve as this income represents only excess income over liabilities in the process of acquiring the business by the assessee. In the circumstances, we are of the view that this aspect has to be looked into by the Assessing Officer for the reason that if this amount is not income at all, the question of reducing .....

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charges of ₹ 20,04,718/- paid by the assessee to its parent company UCB SA by treating such expenses as capital expenditure. The Assessing Officer was of the view that assessee has acquired this software and this has enduring benefit therefore the cost for acquisition of such software is capital in nature and allowed depreciation @16%. 17.2. On appeal, the Ld. CIT(A) following the DRP directions for the Assessment Years 2006-07 and 2008-09 upheld the finding of the Assessing Officer that .....

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nd related functionalities; data security, data protection, backup/ restore facilities; capacity planning and performance tuning; e-mail capacity; connection to intranet sites; web browsing capacity; access to corporate portal and global resources; worldwide support via globalized helpdesk organization and access/ usage of people management software. 18.1. Ld Counsel submits that the assessee has claimed the said amount as revenue expenditure under section 37(1) of the Act. The learned AO held t .....

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in nature. The Ld. CIT(A) also held that the software was to be developed by the parent company would be provided to the Assessee free of cost which amounts to acquisition of asset to be capitalized in several years and hence providing enduring benefit. 18.3. The Ld. Counsel submits that these expenses facilitate the efficient and smooth conduct of its business activities, being essentially in the nature of access/ usage charges for various applications, intranet websites, emails, global resourc .....

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ed that "license charges" includes expenses on development of software and in case of any future changes, upgradation or new versions that will be developed in future, the assessee will have an access to the same. The AO further, held that since the Assessee is not in the business of Software but in the manufacturing business acquiring of the econnectivity and information system services is to support its pharmaceutical business. Further, schedule 1 to the agreement, i.e. 'Services .....

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e software. Also, the Assessee pays the costs/ charges for usage of the lease line separately. 18.5. The Ld. Counsel further submits that UCB SA provides these services at the same professional service standard as other third party service providers. The allocation of these expenses by UCB SA is also done on a rational basis, i.e the number of employees in the assessee company and usage of the remote connections. Further, these expenses are in the nature of periodic (annual) charges, and are not .....

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of the authorities below. The assessee is paying charges to its parent company UCB SA annually certain amounts towards following services: access/ usage of SAP modules and related functionalities; data security, data protection, backup/ restore facilities; capacity planning and performance tuning; e-mail capacity; connection to intranet sites; web browsing capacity; access to corporate portal and global resources; worldwide support via globalized helpdesk organization and access/ usage of peopl .....

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s applications, intranet websites, emails, global resources etc for day today running of the business. We do not find any acquisition of software by the assessee by payment of this activity charges. We also do not find any enduring benefit for the assessee. Thus, we hold that the e-connectivity charges paid by the assessee are of Revenue in nature. 21. In the result, the appeal filed by the assessee is partly allowed. ITA No. 6454/Mum/2013 - A.Y. 2004-05 22. The only ground in Revenue s appeal i .....

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The Ld. CIT(A) has erred on facts and in law in holding that the TNMM method considered by the assessee is most appropriate method for computing of the arm s length price without appreciating the fact that the Hon ble ITAT in assessee s own case for Assessment Year 2002-03 & 2003-04 has rejected both the methods adopted by the Assessing Officer (CUP & the assessee (TNMM) and had restored the issue back to the file of the Assessing Officer for readjudication . 23. At the outset, the Ld. .....

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od for Assessment Years 2008-09 & 2009-10 (Paper book 189 to 215). Referring to page No. 183 to 188, the Ld. Counsel for the assessee submits that order giving effect was passed by the TPO granting relief as per the directions of Hon ble ITAT for the Assessment Years 2002-03 & 2003-04. The Ld. Counsel for the assessee further submits that TPO has accepted the directions of this Tribunal and accordingly no adjustments have been proposed in subsequent years i.e. 2010-11, 2011-12 & 2012 .....

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by the Revenue cannot be considered as the most appropriate method therefore the matter was remanded to the file of the Assessing Officer with a direction to decide the appropriate method. It was further held that assessee is free to adopt any method as prescribed by law if it considers that method as the most appropriate method. TNMM may also be considered if the transaction or a class of transaction are property evaluated in accordance with law and the Assessing Officer may accept internal com .....

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e TNMM method is the most appropriate method and deleted the adjustment and therefore prays for sustaining the order of the Ld. CIT(A). 26. We have heard the rival contentions and perused the orders of the authorities below. In this case, the Tribunal for the Assessment Years 2002-03 and 2003-04 rejected CUP method and considered segmental TNMM method as the most appropriate method directed the Assessing Officer to examine the external comparables and in the absence of such comparables to accept .....

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r was passed for the year under consideration also. We find from the order of the Ld. CIT(A) that remand report was called for by the Ld. CIT(A) and considering the remand report and directions of the DRP for the Assessment Years 2006-07 and 2008- 09, the Ld. CIT(A) held that assessee s margin is quite high as compared to arithmetical mean margin of the comparables and therefore adjustment made by the Assessing Officer/TPO being CUP as Most Appropriate Method is directed to be changed following .....

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ted above was referred to the AO/TPO to verify the material submitted by the appellant as to whether the transactions of import of APIs (i.e. the margins of FDF segment) meet the arm's length test. In remand report the A.O. stated that the appellant has incorporated the other income on sale ratio of FDF on total sales and if the same is excluded the operating margin of FDF goes down at 28.42%. The AO/TPO further stated that the computation of operating margin for FDF segments which has adopt .....

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n on sales ratio the Margin goes to 28.42%. The appellant further stated that it has submitted segmental margin analysis computed using same methodology in Transfer Pricing study in as A. Y.s 2005-06 upto 2008-09 which has been accepted by the TPO and hence there should not be any objection by him in this regard. Regarding computation of margin on comparable AO has shown arithmetical mean 6.41% in 22 comparables and thereafter suggested exclusion of few comparables whose operating revenue are ve .....

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prowess data and capitaline which was accessible by the TPO as well. Regarding TPO's objection for non specification of percentage of RPT the appellant stated that for computing of comparable companies, companies in related party transaction have already been rejected and hence the observation was not correct. Since CUP method was rejected by Hon'ble IT AT and also objected to by TPO in remand, same is not being considered. Accordingly objection raised by TPO under rule 46A is not releva .....

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012. The observation of DRP is reproduced as under :- "We have gone through the orders of the ITAT for the A. Y 2002-03 and 2003-04 and the Transfer Pricing Report of the assessee, during the year under consideration. The assessee during the year has made transaction wise comparability analysis in the Transfer Pricing Report. The TPO without taking into consideration the directions of the ITAT in assessee's own case for the A.Y 2002-03 and 2003-04 still followed the approach of the then .....

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he TPO/AO are at liberty to verify the benchmarking analysis done by the assessee under the TNMM on transaction by in consonance with the directions of the 1TAT in the earlier years, while giving effect to these directions. As the adjustment proposed by the TPO using CUP as the MAM has already been directed to be deleted, the other objections raised by the assessee become infructuous . From the above it is noted that Hon'ble ITAT had directed to carry out the transaction wise analysis which .....

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compared to arithmetical mean margin of the comparables and hence the adjustment made by the AO/TPO being CUP as MAM is directed to be changed following the decision of the Hon'ble ITAT in appellant's own case for A.Y. 2002-03 and 2003-04. However, the Assessing Officer/TPO would be at liberty to factually verify the benchmarking analysis carried out by the appellant under TNMM on transaction to transaction basis in consonance with directions of IT A T while giving effect to this order. .....

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evenue is dismissed. ITA No. 6682/M/2013 - A.Y. 2005-06 - Assessee s appeal 28. The first ground of appeal in assessee s appeal is that the Ld. CIT(A) erred in upholding the disallowance of sales promotion expenses incurred by the appellant to the tune of ₹ 11,94,376/- by considering the same as not having been incurred for the appellant s business. 22. This issue is identical with the issue in Ground No.1 in ITA No. 6681/M/13 for assessment year 2004-05 from para 2 to 7. Therefore, on sim .....

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ITA No. 6681/M/13 for assessment year 2004-05 from para 17 to 20.1. Therefore, on similar lines and for similar reasons, the ground raised by the assessee in ITA No. 6682/M/13 for assessment year 2005-06 is allowed. 25. In the result, the appeal filed by the assessee is allowed. ITA No. 6455/M/2013 - A.Y. 2005-06 - Revenue s appeal 26. The only ground in Revenue s appeal is with respect of Transfer pricing adjustment. 27. This issue is identical with the issue in Ground No.1 in ITA No. 6454/M/1 .....

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Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM – Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017



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