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1 - 7 of 7 (0.28 seconds)Assistant Commissioner Of Income Tax vs Air Canada [Alongwith Ita Nos. 1341 To ... on 28 March, 2003
14. It has been held by various courts that it is not for
the revenue authorities to dictate to the assessee as to how he
should conduct his business and it is not for them to tell the
assessee as to what expenditure the assessee can incur. The
question whether decision was commercially sound or not is not
relevant. The Hon'ble High Court in the judgment cited as EKL
Appliances [Supra] has held that the assessee was not required to
show that any expenditure incurred by him for the purpose of
business carried on by him has actually resulted in profit or
income either in the same year or in the subsequent years.
Commissioner Of Income Tax-I vs M/S. Cushman And Wakefield (India) Pvt. ... on 23 May, 2014
Rand India Pvt. Ltd. v. Additional
Commissioner of Income\Tax, 2012 (13) ITR
(Trib) 422 and Commissioner of Income Tax-I
vs. Cushman and Wakefield India Pvt. Ltd.
(ITA No. 475/2012), it has been clearly
established that it is beyond the powers of
the Transfer Pricing Officer to question the
commercial wisdom of the Assessee. The
TPO's authority is restricted to determining
the ALP for international transactions
referred to him by the AO. The TPO, after a
consideration of the facts, can state that the
ALP is 'nil' given that an independent entity
in a comparable transaction would not pay
any amount. Further, the Delhi High Court in
case of Bausch and Lomb Eye care Private
Limited has held that re-characterization of
transaction and questioning commercial
expediency is not permissible on the basis of
6
ITA.Nos.7887 & 7888/Del./2017
M/s. AT Kearney Limited, Gurgaon.
Commissioner Of Income-Tax, Tamil ... vs Fried Krupp Industries on 2 May, 1980
are concerned, both
these companies are Government of India
Undertakings. While Antrix Corporation Ltd.,
is under the administrative control of the
Department of Space and is the commercial
arm of Indian Space Research Organisation
and involved in building satellites, WAPCOS
26
ITA.Nos.7887 & 7888/Del./2017
M/s. AT Kearney Limited, Gurgaon.
Ltd. is a Mini Ratna Public Sector Enterprise
under the aegis of Union Ministry of Water
Resources and provides services in all facets
of water resources, power and infrastructure
sectors in India and abroad. The Hon'ble
Bombay High Court in the case of CIT vs.
Thyssen Krupp Industries India (P) Ltd., has
held that Public Sector Undertakings are not
driven by profit motive alone, but, such other
considerations also weigh such as discharge
of social obligations, etc., and hence, they
cannot be considered as comparable with the
private companies. Respectfully following the
above decision of the Hon'ble Bombay High
Court and observing that WAPCO Ltd and
Antrix Corporation Ltd. are Government of
India Undertakings, we hold that these two
companies cannot be held as comparable
with the assessee company and are to be
rejected. So far as Edserv Softsystems Ltd.
Section 92CA in The Income Tax Act, 1961 [Entire Act]
Dcit, Bangalore vs M/S Coriant Communication India Pvt. ... on 1 June, 2017
1.8. In context of the present case, what the
above guidance highlights is that in applying the cost
plus method, it is important to ensure that the arm's
length profit mark up is charged on the value adding
costs incurred by the sendee provider in rendering the
sendees and not on the out of pocket / pass through
costs that by themselves do not add any value and do
not contain any element of provision of a service but are
merely incurred by the service provider for
administrative expediency and convenience."
10.1. He submitted that the stand of the assessee is
also supported by the decision of Coordinate Bench of the
Tribunal in the case of DCIT vs., Cheil Communications
India Pvt. Ltd., ITA.No.712/Del./2010 and various other
decisions as mentioned in the paper book. He submitted
that the Ld. CIT(A) has given well reasoned finding in his
Order to address this issue. Therefore, the same being in
consonance with Law, should be upheld and the ground
raised by the Revenue should be dismissed.
Johnson Matthey Chemicals India ... vs Additional Commissioner Of ... on 6 November, 2017
Rand India Pvt. Ltd. v. Additional
Commissioner of Income\Tax, 2012 (13) ITR
(Trib) 422 and Commissioner of Income Tax-I
vs. Cushman and Wakefield India Pvt. Ltd.
(ITA No. 475/2012), it has been clearly
established that it is beyond the powers of
the Transfer Pricing Officer to question the
commercial wisdom of the Assessee. The
TPO's authority is restricted to determining
the ALP for international transactions
referred to him by the AO. The TPO, after a
consideration of the facts, can state that the
ALP is 'nil' given that an independent entity
in a comparable transaction would not pay
any amount. Further, the Delhi High Court in
case of Bausch and Lomb Eye care Private
Limited has held that re-characterization of
transaction and questioning commercial
expediency is not permissible on the basis of
6
ITA.Nos.7887 & 7888/Del./2017
M/s. AT Kearney Limited, Gurgaon.
1