2024 (8) TMI 889 - SCH - Income Tax

Maintainability of SLP on low tax effect - TP Adjustment - allocation of certain common expenditure - Expenditure incurred as common for two different segments - comparability selection As decided by HC 2019 (2) TMI 1993 - DELHI HIGH COURT choice of the assessee in relying upon the headcount principle per se could not have been rejected and remitted the matter for consideration of one of the comparables i.e. for M/S Indus Technical and Financial Consultants Ltd as this comparable was included by the TPO relying upon the material available at that time from the internet - HELD THAT - As it is not in dispute that the tax effect comes to Rs.81, 27, 390/- (Rupees Eighty One Lakh Twenty Seven Thousand Three Hundred and Ninety Only) which is below the limit of 2 crores fixed under the policy. In view of Clause 4 of the Circular dated 11th July 2018 the case will be covered by the policy of the Union of India. Hence we dispose of the petition on the ground of low tax effect. All questions of law are kept open.

Summary

The Supreme Court disposed of the petition due to low tax effect below the policy limit of Rs. 2 crores, as per Circular dated 11th July, 2018. All legal questions remain open.