| |
The Tax PublishersITA No. 2623/Del/2015
2019 TaxPub(DT) 4585 (Del-Trib)INCOME TAX ACT, 1961
Section 10A Section 92C(4), First proviso
First proviso to section 92C(4) was applicable only to situation where TP adjustment was made by AO/TPO/DRP, accordingly AO was directed to grant benefit of deduction under section 10A on the amount of voluntary TP adjustment made by assessee.
|
Deduction under section 10A - Allowability - Suo motu TP adjustment made by assessee - Applicability of first proviso to section 92C(4)
Assessee claimed deduction under section 10A with respect to suo moto transfer pricing adjustment made by the assessee. AO denied assessee's claim taking plea of section 92C(4). Held: First proviso to section 92C(4) is evidently applicable only to situations where adjustment made by assessee itself. If legislative intent was to treat adjustments made by TPO at par with voluntary adjustment made by assessee, the legislative intent would have been expressed in different words and section 92C(4) would not have referred to computation of income made by AO in terms of ALP determined under section 92C(3) based 'enhanced' income. Accordingly, AO was directed to grant benefit of deduction under section 10A on the amount of voluntary TP adjustment made by assessee.
Followed:CIT v. Motorola India Electronics Pvt. Ltd. (2014) 265 CTR 94 (Karn-HC) : 2014 TaxPub(DT) 0705 (Karn-HC), Mercer Consulting (India) Pvt. Ltd. v. Dy. CIT (2014) of ITAT Delhi Bench (2014) 150 ITD 1 (Del-Trib) : 2014 TaxPub(DT) 3733 (Del-Trib), Maral Overseas Ltd. v. Addl. CIT of Indore Tribunal Special Bench in [ITA Nos. 777 and 900/Ind/2004] : 2012 TaxPub(DT) 2211 (Ind-Trib) and Hritnik Exports of the Hon'ble Delhi High Court in [ITA 219/2014 & 239/2014] : 2015 TaxPub(DT) 1977 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 92C
 SUBSCRIBE FOR FULL CONTENT
|