Ordinary profits’ referred to in Section 80IA is different from ‘ALP’

The Tribunal placed reliance on the Chennai Tribunal ruling in the case of Tweezerman (India) Private Limited v. Addl. CIT, [2010] 4 ITR (Trib.) 130 (Chennai) which ruled that provisions of Section 80-IA(10) of the Act do not give an arbitrary power to the AO to determine the profits of the taxpayer. It is incumbent on the AO to show how ordinary profits were computed based on similar comparable case.  The phrase ‘more than ordinary profits’ referred in Section 80-IA(10) of the Act is different from ‘ALP’.

The Tribuna

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