The ITAT deleted the addition made for cash deposited by assessee-jeweller in its bank account post demonetization, since assessee had explained source of said cash deposits as sales of jewellery, produced sale bills and admitted same as revenue receipt as well as offered it to tax and assessee also represented outgo of stocks, which was […]
COMPARABLES FOR ITES FOR AY 2008-09
LIONBRIDGE TECHNOLOGIES PVT LTD VS ITO [2014] 48 TAXMANN.COM 46 (MUMBAI – TRIB.) – The Tribunal held that comparables providing KPO services like engineering or data analysis/processing etc cannot be comparable with the assessee engaged in providing low end back-office operations. The assessee was engaged in providing low end back-office support services. During AY 2007-08, […]
BRIGAE CORPORATION INDIA (P.) LTD vs ACIT [2014] 48 taxmann.com 176 (Chennai- Trib.)
Facts: For AY 2007-08, the Assessee was engaged in the business of providing customer supporting services in the form of email support, voice support & chatting and financial information support for customers identified by the AEs. The TPO selected M/s.Eclerx Services Ltd as a comparable. The CIT(A) observed that Eclerx has an operating profit of […]
CHHEDA HOUSING DEVELOPMENT CORPORATION VS. AD.CIT ITA No.: 86/Mum./2017 (ITAT Mumbai)
The Tribunal held that compensation received in lieu of extinction of right to sue is capital receipt not chargeable to tax. FACTS The assessee, a partnership firm, was engaged in the business of construction and development of property. During FY 2004-05, the assessee had entered into a MOU with landowner for the development of his […]
PIAGIO VEHICLE P. LTD v DCIT TS-534-ITAT-2012-TP
The ITAT held that the margin earned from sale of spare parts for after sale service cannot be compared with margin earned from sale of components sourced from India and sold to AEs. The taxpayer had exported parts and components to AE as well as non-AE. The TPO adopted internal TNMM as against external TNMM […]
ACUMEN FUND ADVISORY SERVICES INDIA (P.) LTD VS DCIT [2014] 50 TAXMANN.COM 317 (MUMBAI- TRIB.)
The issue for consideration was whether Motilal Oswal Investment Advisor, engaged in merchant banking activity can be compared with Assessee engaged in investment advisory services. Facts: For AY 2009-10, the assessee rendered investment advisory services to its AE. The assessee applied TNMM as the MAM and arrived at mean margin of 18.60% (PLI=OP/OR) by selecting […]
CIT V. MIRZA INTERNATIONAL LTD [2014] 51 TAXMANN.COM 21 (ALLAHABAD HC)
The Issue for consideration was whether there can be difference in treatment of export incentives while computing margins of comparables and Assessee The assessee made export sales to its AE in UK for AY 2008-2009. The TPO passed an order making TP adjustments. The CIT(A) observed that the TPO has computed the operating margin of […]
AGILENT TECHNOLOGIES INTERNATIONAL (P.) LTD. V. DCIT [2014] 52 TAXMANN.COM 85 (DELHI – TRIB.)
The issue before the ITAT was whether claim of working capital adjustment can be rejected on the ground that the assessee is not engaged in manufacturers/traders. Facts For AY 2006-2007, a TP adjustment was proposed by the TPO in respect of Software development segment and IT enabled services (ITES) segment. The Assessee had claimed that […]
KAPIL KUMAR AGARWAL VS. DCIT (Delhi ITAT) ITA No. 2630/Del./2015
Acquisition of an apartment under a builder-buyer agreement wherein the builder gets construction done in a phased manner and the payments are linked to construction is a case of purchase and not construction of a new asset. The Tribunal held that even in a case where construction of new asset commenced before the date of […]
BENGAL DCL HOUSING DEVELOPMENT CO. LTD v DCIT (2019) 106 taxmann.com 346, TS-297-ITAT-2019(Kol)
The assessee was merely a developer and not the owner. Accordingly notional annual value of unsold flats, held as stock in trade by the assessee, could not be assessed under section 23 Facts: The Assessee is a joint sector company promoted by West Bengal Housing Board alongwith M/s DC Properties Ltd for undertaking large scale […]