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2015 (10) TMI 1890 - ITAT DELHITransfer pricing adjustment - addition made by the AO on account of difference in arms length price deleted by CIT(A) - Held that:- It is clearly established that the assessee is carrying on the business activity other than as per service agreement with the principle. Therefore, the 10% markup is to be made only of ₹ 32,69,372/- in the absence of any comparable transaction. The action of the AO in making addition of ₹ 20,41,412/- is not in order. In view of above, we find that the Ld. CIT(A) has rightly deleted the addition of ₹ 20,41,412/- on this account. Therefore, we are of the view that no interference is called for in the well reasoned order passed by the Ld. CIT(A) - Decided against revenue. Disallowance u/s. 14A - CIT(A)restricted the disallowance - Held that:- Even in we consider that expenses incurred on accounting & infrastructure services and auditor's remuneration amounting to ₹ 9,98,524/- and ₹ 2,18,994/- respectively are partly connected with the earning of dividend income and investment. Such disallowance should not be more than 10% of expenses of ₹ 12,17,518/- (i.e. ₹ 1,21,752/-) when the assessee has already disallowed and capitalized in investment a sum of ₹ 3,08,710/-.) - In view of the above discussion the disallowance, we find that the Ld. CIT(A) has rightly restricted to when no director's remuneration has been claimed by the Ld. CIT(A). Therefore, we are of the view that no interference is called for in the well reasoned order passed by the Ld. CIT(A), hence, we uphold the impugned order - Decided against revenue.
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