ITAT Mumbai allows Transfer Pricing determination for Rallis India Ltd. using the ‘Other Method’ instead of CUP. Key points on ALP adjustments and deductions.
As noticed earlier, the provisions of sec. 147 of the Act makes it mandatory that the AO should be clear about the alleged escapement of income while recording reasons for reopening of assessment.
ITAT Delhi held that based on incriminating materials unearthed during the course of search, proceedings under section 153C of the Income Tax Act needs to be initiated. Hence, initiation of proceedings u/s. 148 illegal and void ab initio.
AO on perusal of the details submitted by the assessee observed that the assessee could not prove the bad debts written off in its books of accounts are, in fact bad debts and irrecoverable with relevant evidences.
AO also made an addition on account of refundable security deposits paid by the developer to the assessee while entering the Joint Development Agreement as income of the assessee.
ITAT Mumbai held that benefit of cost inflation index admissible as per second proviso to section 48 of the Income Tax Act. Accordingly, indexation benefit admissible even in respect of assets held in foreign countries.
ITAT Delhi remanded the matter back to CIT(A) since CIT(A) failed to examined the validity of jurisdiction under section 148 of the Income Tax Act. Accordingly, order set aside and matter remanded back.
ITAT Kolkata held that since filing of Form 67 is procedural in nature, delay in filing of the same cannot be the reason for denial of relief under section 90 of the Income Tax Act. Accordingly, appeal allowed.
ITAT Kolkata held that CIT(A) rightly allowed interest earned from a co-operative bank as eligible for deduction under section 80P(2)(d) of the Income Tax Act. Accordingly, appeal filed by revenue dismissed.
ITAT Chandigarh held that no incriminating material found during course of search and assessment is completed during date of search hence addition under section 68 of the Income Tax Act not sustainable.
