| COURT: | ITAT Delhi |
| CORAM: | C. M. Garg (JM), Pramod Kumar (AM) |
| SECTION(S): | 10B (1)(e)(iii), 92CA(3) |
| GENRE: | Transfer Pricing |
| CATCH WORDS: | adjustment, ALP, capacity underutilization |
| COUNSEL: | G C Srivastava |
| DATE: | October 13, 2014 (Date of pronouncement) |
| DATE: | October 18, 2014 (Date of publication) |
| AY: | 2005-06 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Adjustment for capacity underutilization has to be in the results of the comparables and not the tested party. A 100% captive unit has to show that underutilization was for reasons beyond its control | |
The CIT(A) granted impugned relief by making adjustments, on account of capacity underutilization, in the results shown by the tested party and thus computing hypothetical financial results which the tested party would have achieved in perfect conditions. Such an exercise …
DCIT vs. EDAG Engineers & Design India Pvt Ltd (ITAT Delhi) Read More »
Recent Comments