TMI Blog2018 (12) TMI 1660X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, whereas the said provision applies to a case where Arm s Length Price was determined by the AO, that mistake has been corrected by the tribunal, set aside the order passed by the commissioner as well as the assessing authority - thus we direct the AO to delete the addition made by the AO. Hence, the ground of appeal of the assessee is allowed. - I.T.A. No. 2043/Ahd/2014 (Assessment Year : 2010-11) - - - Dated:- 3-12-2018 - Shri Waseem Ahmed And Smt Madhumita Roy, JJ. Appellant by: Shri Tushar P. Shah, A.R. Respondent by: Shri Lalit P. Jain, Sr. D.R. ORDER Waseem Ahmed, The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Appeals) XI, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)-XI/77/Wd-5(2)/1314 dated 05.05.2014 arising in the matter of assessment order passed under s.143(3) of the Income Tax Act, 1961(here-in-after referred to as the Act ) dated11.03.2013 relevant to Assessment Year (AY) 2010-11. 2. The grounds of appeal raised by the assessee are as under:- 1. Learned CIT (A) erred in law and on facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Infrastructure Management Services. 4.1 The assessee in the year under consideration has claimed deduction u/s 10B of the Act amounting to ₹ 82,55,275/- and furnished the working for the same in form no. 56G as specified in Rule 16E of the Income Tax Rule. The necessary working for the deduction claimed by the assessee u/s 10B of the Act is extracted as under: Profit As per profit Loss A/c ₹ 42,00,663/- Less: Income considered Separately a. Interest income ₹ 10,31,533 ₹ 10,31,533/- ₹ 31,69,130/- Add: Depreciation debited to P L A/c included above ₹ 37,77,940/- ₹ 69,47,070/- Less: Depreciation allowable u/s 32(1)(i) ₹ 47,08,740/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the bills raised by the assessee to its associated enterprises do not take into account voluntarily adjustment made by the assessee as there was no export of the services. Similarly, there was no foreign exchange received in India. Accordingly, the AO disallowed the exemption claimed by the assessee on account of such voluntary adjustment and restricted the same at ₹ 24,98,330/-. Accordingly, the AO disallowed the excess deduction of ₹ 57,56,945/- and added to the total income of the assessee. 5. Aggrieved, assessee preferred an appeal to ld. CIT(A) who confirmed the order of the AO. Being aggrieved by the order of ld. CIT(A) assessee is in appeal before us. 6. The ld. AR before us submitted as under: The issue whether voluntary adjustment made by the assessee to arrive at arms length price u/s. 92C was not considered while granting deduction u/s. 10B of the Act. The said issue is decided in favour of the assessee in the case of I GATE GLOBAL SOLUTIONS LTD, vs. ACIT by Hon'ble ITAT, BANGALORE 'B' BENCH in ITA Nos. 248 249/Bang/2007. The said judgement of the tribunal has been approved by hon'ble Karna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computed in such manner as may be prescribed (3) For the purposes of this section, - i) ''associated enterprise shall have the meaning assigned to it in sub-section(1)and sub section (2) of section 92A; ii) arm's length price shall have the meaning assigned to it in clause (ii)of section 92F; iii) excess money means the difference between the arm's length price determined in primary adjustment and the price at which the international transaction has been actually undertaken ; iv) ''primary adjustment to a transfer price means the determination of transfer price in accordance with the arm's length principle resulting in an increase in the total income or reduction in the loss, as the case may be, of the assessee; v) secondary adjustment means an adjustment in the books of account of the assessee and its associated enterprise to reflect that the actual '' allocation of profits between the assessee and its associated enterprise are consistent with the transfer price determined as a result of primary adjustment, thereby removing the imbalance between cash account and actual profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to have allowed deduction as claimed by the appellant following decision of higher judicial authority on identical facts. It be so held now. 5. Levy of interest u/s 234B 234/C of the act is not justified. 6. Initiation of penalty u/s 271(1)(c) of the Act is not justified. The appellant craves leave to add, amend, otter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 3.3 It is seen from the grounds of appeal for AY 2010-1 1 mentioned above that there was no reference to TPO's order. 3.4 Making further sincere efforts, in collaboration with the Assessing Officer of the assessee company, the assessment order was perused (attached as annexure to this letter). Again, no reference to 1'PO could. be traced in the said order of Assessing Officer for AY 2010-11. 4. In such circumstances, your good-self is kindly requested to direct specifically as to what brief on which specific issue is desired from the TPO. so that same may be submitted to your good-self without further delay. 5. Submitted for kind consideration, directions if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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