TMI Blog2023 (7) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, Appellant stated that the company should also accept these accounts as much as the A.O. has accepted the accounts of assessee. The Directors note in the Annual Accounts specifically refers to solar trial test and how the activity undertaken did not take off and how having regard to the principles of accounting standard of impairment of assets (AS 28) assessee has made the provisions in respect of such impairment. The auditors have accepted it. The accounts have been approved by the company in general meeting and has also been filed by the Registrar of Companies. Therefore, the ITAT was correct in not interfering with the order of the DRP with regard to computation of PLI. The DRP has correctly held that the ST activity was an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to allow the set off of brought forward unabsorbed depreciation for A.Y. 1999-2000 and 2000-01 against incomes of A.Y. 2010-11 in contravention of the pre-amended provisions of section 32(2) of the Act applicable period of 8 years immediately succeeding the assessment year for which such depreciation allowance was first computed got expire in A.Y. 2007-08 and 2008-09 respectively? 3. Whether on the facts and in circumstances of the case and in law, the Tribunal was right in directing to allow the set off of brought forward unabsorbed depreciation for A.Y. 1999-2000 and 2000-01 i.e. for the period prior to amendment in sub section (2) of Section 32 of the Act w.e.f. 1/4/2002? QUESTION NO. 1 2. This appeal impugns an order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after considering the material before him determined the Profit Link Indicator (PLI) of Operating Profit (OP)/Operating Cost (OC) at 25.83%. Accordingly, an adjustment amounting to Rs. 10.26 Crores was proposed in the manufacturing segment. 6. Assessee in its objections before the DRP contended that the TPO was wrong in including the solar testing cost which was operating in nature, that it was an extraordinary cost, that it had undertaken trial run for production of solar receiver tubes during the year under consideration, that the economic conditions turned unviable and there was no demand for solar tubes, that assessee stopped manufacturing the tubes, that it had incurred huge costs with respect to solar test activity, that the Associ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricing Study Report, the TPO found that (i) assessee had benchmarked its transaction after segmentalizing the activities into manufacturing and indenting, i.e., there were only two segments as per segmental accounting and (ii) Assessee, however, while computing the margin (PLI) had divided the segmental accounting into three parts, that ST had separate segment from the manufacturing segment and that the same was not so presented in the audited segmental accounting. 9. Mr. Chhotaray relying on the judgment of the Hon ble Apex Court in Apollo Tyres Ltd. vs. Commissioner of Income Tax (2002) 274 ITR 254 submitted that so much as the A.O. has to accept the authenticity of the accounts with reference to the provisions of the Companies Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-operating transactions had to be excluded for arriving at the correct PLI. This has been upheld by the ITAT. 11. As held by the Hon ble Apex Court in Apollo Tyres Ltd. (supra) the A.O. has to accept the authenticity of the accounts. It is not a case of the A.O. that the accounts of assessee have not been scrutinized or certified by statutory auditors or approved by the company in general meeting or has not been filed before the ROC. In fact, Mr. Chhotaray stated that the company should also accept these accounts as much as the A.O. has accepted the accounts of assessee. The Directors note in the Annual Accounts specifically refers to solar trial test and how the activity undertaken did not take off and how having regard to the princi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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