9911796707
|
Home
Issues involved: The judgment involves transfer pricing adjustment, corporate tax issues, initiation of penalty proceedings u/s 271(1)(C), and levy of interest u/s 234B and 234C of the Act.
Transfer Pricing Adjustment: The assessee appealed against the first appellate order on grounds related to transfer pricing adjustment. The assessee argued for analyzing international transactions on a transaction-by-transaction basis to adhere to the arm's length principle. The assessee provided evidence such as pricing policy documents, certificates, and bench marking analysis to support its pricing policy. Citing relevant tribunal decisions, the assessee requested consideration of additional evidence. The Tribunal set aside the matter to the Assessing Officer (AO) for fresh adjudication, emphasizing the need to verify the comparability of instances furnished by the assessee to determine adherence to the arm's length principle. Corporate Tax Issues: The appeal also raised concerns regarding corporate tax issues. The assessee contested the disallowance of royalty expenses and the denial of deduction u/s 10A. The assessee argued that the disallowed royalty expenses were actually paid subsequently and should not be treated as a contingent liability. Regarding section 10A deduction, the assessee referred to a Tribunal decision upheld by the Karnataka High Court and revised its return of income to claim the deduction. The Tribunal directed fresh consideration by the AO on these issues, highlighting the need to verify the correctness of the claims made by the assessee. Penalty Proceedings and Interest Levy: Grounds 9 and 10, related to the initiation of penalty proceedings u/s 271(1)(C) and levy of interest u/s 234B and 234C, were not pursued by the assessee and were rejected. The Tribunal allowed these grounds for statistical purposes. Conclusion: The Tribunal allowed the appeal for statistical purposes, setting aside the issues related to transfer pricing adjustment and corporate tax for fresh consideration by the AO. The order was pronounced on 22/11/2012.
|
