Case Law Details
DCIT Vs EYBGS India Pvt. Ltd. (ITAT Bangalore)
The issue under consideration is whether the officer is correct in rejecting claim for deduction u/s 10AA of the Act on the amount of transfer pricing adjustment voluntarily made by the assessee?
In the present case, DRP took rejected transfer pricing adjustment and along with it Deduction u/s 10AA which is based on that adjustment with the reason that the assessee did not furnish the details as to how the said figure was arrived at by the assessee.
ITAT state that, the DRP was factually not correct in observing that the assessee did not furnish details of voluntary Transfer pricing adjustment. It has added the amount of voluntary TP adjustment while computing the revised margin of the assessee, which is placed in the paper book. He further submitted that the assessee has arrived at the amount of voluntary T.P adjustment in a scientific manner by comparing the margins of comparable companies selected by the assessee. Accordingly he submitted that the Ld DRP was not justified in observing that the same is an adhoc amount. He further submitted that the co-ordinate bench has held in the case of I-Gate Global Solutions Ltd (supra) has held that the assessee is eligible for deduction u/s 10AA on the amount of voluntary TP adjustment.
Accordingly ITAT hold that the assessee is eligible for deduction u/s 10AA of the Act in respect of voluntary Transfer Pricing adjustment made by it.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
