Case Law Details
Brief of the Case
ITAT Pune held In the case of M/s. Vishay Components India Pvt. Ltd. vs. ACIT that where the revenue from year to year has accepted the method adopted by the assessee for benchmarking its international transactions with its associate enterprises, in the absence of any reasons brought on record, there is no merit in deviating or taking stand contrary to the stand accepted in both the preceding and succeeding years.
It was held that for benchmarking international transactions with its associate enterprises on aggregate basis, TNMM method should be applied and since the margins declared by the assessee are higher than the margins declared by the comparables picked up by the assessee in its TP study report and consequently, the international transactions entered into by the assessee with its associate enterprises being at arm’s length price, no addition is warranted in the hands of the assessee.
On the issue of deduction under section 10B, it was decided that this deduction is to be computed in the hands of the assessee before adjusting brought forward unabsorbed losses / depreciation.
Facts of the Case
Please become a Premium member. If you are already a Premium member, login here to access the full content.
