EYGBS (India) LLP v. Dy. CIT [ITA No. 2342/Bang/2019, dt. 23-11-2020] : 2020 TaxPub(DT) 4934 (Bang-Trib)

Allowability of section 10AA deduction on suo moto ALP additions offered by the assessee

Facts:

Assessee was a captive service provider to its AE. It has made voluntary add backs to the Arm's length price on its services to its AE and then claimed the benefit of section 10AA deduction. Lower authorities did not permit the said deduction under section 10AA. On higher appeal --

Held in favour of the assessee that they were entitled to the deduction of section 10AA. The proviso to section 92C(4) is only applicable for additions made by the TPO and not for suo moto additions by assessee.

Applied:

EYBGS India Pvt. Ltd. v. DCIT (I.T.(TP)A. No. 218/Bang/2015) : 2020 TaxPub(DT) 2238 (Bang-Trib)

I-Gate Global Solutions Ltd. (2007) 112 TTJ 1002 (Bang-Trib) : 2007 TaxPub(DT) 1555 (Bang-Trib) affirmed by the Karnataka High Court in I-Gate Global Solutions Ltd. (Order, dated 17-6-2014 passed in ITA No. 453/2008)

AT Kearney India (P) Ltd. (ITA No. 2623/Del/2015, dated 21-6-2019) : 2019 TaxPub(DT) 4585 (Del-Trib)

Editorial Note: Reference be made to the following decisions as well article with topic -- Benefit of Section 10A Post Certain Transfer Pricing Adjustments

Dar Al Handasah Consultants (Shair & Partners) India (P) Ltd. v. DCIT, [ITA No. 1413/PUN/2019, A.Y. 2010-11, dt. 2-12-2019] : 2019 TaxPub(DT) 7929 (Pune-Trib)

Dell International Services India (P) Ltd. v. DCIT [IT(TP)A No. 879/Bang/2018, A.Y. 2007-08, dt. 24-6-2020] : 2020 TaxPub(DT) 2644 (Bang-Trib)