Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 815 - GUJARAT HIGH COURT

2016 (8) TMI 815 - GUJARAT HIGH COURT - TMI - Allocation of selling and distribution expenses for the purpose of deduction under section 80IB - Tribunal reversing the view of the Assessing Office - Held that:- Tribunal relied on the decision of the Supreme Court in case of Bombay Dyeing & Manufacturing Co. Ltd. [1996 (2) TMI 8 - SUPREME Court ] which was squarely applicable in the present case. No question of law arises - Transfer pricing adjustment - Assessing Officer had made additions on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ranged from 0.38% to 33.33% whereas the assessee's rate came to 3%. The Tribunal noted that the Revenue authority did not bring any comparable case on record to show that the payment of commission by the assessee to the associated enterprise was not at arm's length. - TAX APPEAL NO. 607 of 2016 - Dated:- 9-8-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE APPELLANT : MR KM PARIKH, ADVOCATE FOR THE OPPONENT : MR.S.N.SOPARKAR, SR. ADVOCATE with MR B S SOPARKAR, CAVEATOR ORAL ORDER (PER .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of deduction u/s. 80IB of the Act does not survive without appreciating that the Tribunal in I.T.A. No.1279/Ahd/2006 had quashed reassessment proceedings for A.Y. 200001, without commenting on the merits of the case, and without appreciating that the A.O. For the detailed reasons mentioned in the assessment order had reallocated selling and distribution expenses for the purpose of deduction u/s. 80IB of the Act, which was partly deleted by the C.I.T.(A)? B. Whether on the facts and circumstanc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s and circumstances of the case and in law, the ITAT was justified in setting aside the finding of the C.I.T. (A) and directing the A.O. to delete the entire transfer pricing adjustment without appreciating that the A.O. had correctly computed arm's length price in accordance with the provision of section 92C of the Act? 2. In our opinion, only questionA requires consideration, for which purpose this tax appeal is admitted. However, we reframe the substantial question of law as under: Whethe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Supreme Court in case of Bombay Dyeing & Manufacturing Co. Ltd. reported in 219 ITR 521 which was squarely applicable in the present case. No question of law arises. This question is therefore not considered. 4. QuestionC pertains to the decision of the Tribunal to set aside the findings of Commissioner of Income Tax (Appeals) in connection with the transfer pricing adjustments. The Tribunal noted that the Assessing Officer had made additions on the ground that the commission paid by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to its AE and we find that the basis for the payment of commission has also been given to justify it to be at arm's length. The TPO/A.O has nowhere denied that the weighted average rate of commission paid by the assessee is 7.84% as against 11% paid to unrelated party. We also find that in his appellate order, the First Appellate Authority has observed the rate of commission ranging from 0.38% to 33.33%, the assessee's rate is at 3%. We also find that none of the revenue authorities belo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version