9911796707
TMI Blog2012 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... e, in brief, are as under : 2.1 The assessee company (herein after referred to as 'assessee') filed its return of income for Assessment Year 2007-08 on 14.11.2007 declaring income of Rs.41,44,70,704. The return was processed u/s.143(1) and the case was taken up for scrutiny by issue of notice u/s.143(2) on 10.9.2008. The Assessing Officer, with the prior approval of the CIT, Bangalore-I, referred the international transactions entered into by the assessee in the relevant period to the concerned Transfer Pricing Officer (TPO) for determination of the arms length price (ALP) under section92CA of the Act. The TPO after conducting the Transfer Pricing Audit thereon, passed an order under section 92CA on 5.4.2010 determining the adjustment on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting the economic analysis of the Appellant in the Transfer Pricing (TP) documentation, prepared bonafide in compliance with the Transfer Pricing Provisions in the Income Tax Act, 1961 (the 'Act') 3. That the learned AO and the learned Panel erred in disregarding the conditions prescribed under section 92C(3) of the Act for determining the arm's length price in relation to the international transactions of payment of management fees, sales commission and reimbursement of expenses received. 4. That the learned AO and the learned Panel erred both in facts and law in confirming the action of the learned TPO of making an adjustment to the transfer price of the Appellant in respect of its payment of management fees by Rs. 39,838,794 and paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,925,794 as an unexplained expenditure under section 69C of the Act 7. (a) That the learned AO and the learned Panel erred in disallowing expenses incurred on purchase of computer software and license fees amounting to Rs 2,432,678 as capital expenditure (b) Without prejudice to the above, the learned AO and learned Panel erred in not allowing depreciation at 60% under section 32 of the Act on the said capital expenditure. 8. The learned AO and the learned Panel erred in disallowing expenditure on technical assistance and training fees amounting to Rs 1,331,032 as capital expenditure. 9. The learned AO and the learned Panel erred in disallowing expenditure incurred during construction period amounting to Rs 1,211,712 as capital expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not explained the nature of reimbursements. - Disallowance of expenditure amounting to Rs. 3,98,38,794/- incurred by the Appellant Company on payment of management fee to its associated enterprise. The main reasons adduced by the Ld. AO for making this disallowance is that the Appellant Company has not received any service from its associated enterprise; - Disallowance of expenditure amounting to Rs. 14,04,55,153/- incurred by the Appellant Company on payment of sales commission to its associated enterprise. The main reason adduced by the Ld. AO for making this disallowance is that the Appellant Company has not received any service from its associated enterprise. That following are the additional evidences produced before your Honours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly received services from its associated enterprise for which management fee has been paid. Further, these documents also substantiate that the services have been received almost on a daily basis by the Appellant Company from its associated enterprise; - Documentary evidence as proof for actual rendition of services on issues related to sales and marketing, attached herewith at page no.377 to 742 of the paper book. These documents substantiate that the Appellant Company has actually received services from its associated enterprise for which sales commission has been paid. Further, these documents also substantiate that the services received by the Appellant Company from its associated enterprise are very significant. That before the Ld. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the same shall only advance the cause of justice and fair play. Therefore, it is prayed that the additional evidence may be admitted and adjudicated upon. The Appellant Company reserves its right to make submissions at the time of adjudication upon the issue of admission of the said documents as additional evidence." 4.2 The learned counsel for the assessee was heard in detail on the application for admission of additional evidence and Paper Book comprising 734 pages attached thereto. It was pleaded by the learned counsel for the assessee that in view of the submissions made therein the additional evidence be admitted as it would cause no prejudice to the Revenue. Rather, its admission would only advance the cause of justice and fair pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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