9911796707
TMI Blog2020 (1) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... as a result of MAP proceedings - also that the Assessing Officer himself has adopted 4% as CLC/TLC ratio - HELD THAT:- While the outcome of MAP proceedings does not indeed find the parties for the years other than years before the competent authorities, it does indeed provide a reasonable basis particularly when it is dealing with an estimation parameter. The Assessing Officer has given vague reasons for deviating from the same in the present year. In our considered view, therefore, it will meet the ends of justice that 7.5% as adjusted CLC/TLC ratio is adopted for computing this year s taxable income as well. To this extent, we uphold the plea of the assessee. Levy of interest under section 234B - assessee has only sought consequential re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout prejudice to above, based on the facts and in the circumstances of the case and in law, the learned AO and the Hon'ble DRP have erred by not considering the suo moto enhanced CLC to TLC ratio based on the methodology agreed between the competent authorities of the United States of America and India. 3. The assessee is a company incorporated in the USA, and is said to be engaged in the business of integrated air and ground transportation of time sensitive shipments. The assessee has used it's own aircrafts and the third party aircrafts for transportation of these shipments. So far as the use of third party aircrafts, on which these shipments are transported, the assessee has been declined the treaty protection under article 8 of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above remarks the taxability is worked out as under: S.No Particulars Amount (in Rs.) (A) Total revenue from Indian operations 6,97,12,60,779 (B) (C) Ratio of Commercial Linehaul to Total Linehaul estimated supra. 10% (D) Revenue attributable to usage of third party airlines [(A) * [Ql 697,126,078 (E) Taxable income from Indian operations 4.07% of [D) 28,373,031 Since the assessee has furnished inaccurate particulars of its income, therefore penalty proceedings u/s. 271(l)(c) of the Act is initiated. (Add: Business income taxable : ₹ 28,373,031/-) 4. Aggrieved, assessee raised an objection before the DRP but without success. The assessee is not satisfied and is in appeal before us. 5. We have heard the rival c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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