9911796707
TMI Blog2015 (1) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of TP addition; Rs. 614.47 crore arising out of disallowance u/s 40(a)(i); Rs. 1.25 lakh arising out of disallowance u/s 14A. 3. We are taking up the first component, being the demand of 6.69 crores arising out of the TP addition. Our attention has been drawn towards the order passed by the TPO, who, while computing the ALP of the commission income earned by the assessee, clubbed cost of goods sold of the associated enterprise whose goods were sold by the assessee on commission basis along with the expenses incurred by the assessee. It was demonstrated by inviting our attention towards page 30 of the TPO's order on which he computed the TP adjustment at Rs. 12.46 crores by including the cost base of the AE at Rs. 564 crores with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was pleased to delete this disallowance. 6. The ld. DR vehemently argued that the correct position of law did not appear to have been properly placed before the Bench at the time of haring of the appeal for the assessment year 2006-07. Referring to amendment carried out to sec. 40(a)(i) by way of substitution of clauses (i), (ia) and (ib) for sub-clause (i) of section 40(a) w.e.f. 1.4.2005, it was stated that the so-called non-discrimination between the resident and non-resident has been dispensed with w.e.f. the assessment year 2005-06. He stated that such amended position ought to have been placed before the Bench during the course of hearing for the assessment year 2006-07. Regarding the other point considered by the Tribunal for the ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue. We order accordingly, and hold that no recovery can be effected against the demand arising from such disallowance. 8. The last component of the demand is a meager sum of Rs. 1.25 lac which resulted out of disallowance of Rs. 2.33 lac made by the A.O. u/s 14A of the Act. Considering the facts in totality and the smallness of the demand on this issue, we are of the considered opinion that the assessee deserves a full stay on its demand of Rs. 621.18 crores. We order accordingly. However, the assessee is directed to furnish an undertaking to the satisfaction of the A.O. that it shall not alienate any of its immovable assets till the disposal of the appeal. 9. It has been brought we notice that the early hearing of this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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