Case Law Details
Brief of the case:
ITAT held in Sumitomo Corporation India Pvt. Ltd. Vs. DCIT that if the case of assessee was decided in the earlier assessment years and if the facts and circumstances were same as in the previous years ,then in the current year also same basis for assessment should be adopted. As in the above case, in the earlier assessment years the case of assessee was decided comparing the percentage of commission earned from non-AE transactions and AE transactions considering the same to be suitable appropriate internal comparable. So as in the current year also all the facts and circumstances were same, so the method which was adopted in the past years, the same method should be adopted as an appropriate internal comparable.
Facts of the case:
Assessee had filed its return of income at Rs 6,13,95,092/- but AO made addition of Rs 1,04,95,90,066/-
And mad total income at Rs.1,11,09,85,160/- . The reason for making addition was the wrong method for calculating transactions at arm’s length price. Moreover the AO was comparing the trading transactions with non-trading transactions of the assesse as assesse was involved in trading transactions with Non-AE and commission based transactions with AE.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
