Headcount a Valid Basis for Shared Cost Allocation: ITAT Mumbai

Cable and Wireless (India) Limited Vs DCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has ruled in favour of Cable and Wireless (India) Limited (CWIL), holding that the allocation of common employee costs from an associated enterprise based on headcount is an acceptable method. The Tribunal set aside the Assessing Officer’s (A.O.) order, which had disallowed a portion of such expenses for two consecutive assessment years, 2013-14 and 2014-15. The case pertains to expenses that CWIL reimbursed to its associated enterprise, Cable and Wireless Networks India Private Limit...