Tribunal held that exclusion of companies on ground of\u00a0 revenue filter, non-availability of\u00a0 segmental data, functional dissimilarities\u00a0 is held to be proper. Working capital adjustment on actual basis is held to be allowable.\u00a0\u00a0\u00a0\u00a0 Tribunal held that if disallowed while computing business income of the undertaking, which was eligible for deduction under section\u00a010A\u00a0of the Act, would go to increase the profits and gains derived from the eligible undertaking. Tribunal also held that\u00a0 the addition relating to transfer pricing adjustment was not eligible for deduction under section\u00a010A\u00a0of the Act, in view of the bar provided in the proviso to section\u00a092C(4)\u00a0of the Act. Other disallowances made by the Assessing Officer would go to increase the profits derived from the undertaking. Since it was supported by the Central Board of Direct Taxes Circular No. 37 of 2016, dated November 2, 2016 ([2016 388 ITR (St.) 62), the Assessing Officer was directed to recompute the deduction. (AY.2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Transactional Net Margin Method-Comparables-Exclusion of companies on ground of revenue filter, non-availability of segmental data, functional dissimilarities-Held to be proper-Working capital adjustment on actual basis-allowable-Disallowance of interest would increase profits and gains derived from eligible-The addition relating to transfer pricing adjustment was not eligible for deduction under section 10A of the Act, in view of the bar provided in the proviso to section 92C(4) of the Act. [S. 10A, 92C(4)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-18356","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4M4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=18356"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18356\/revisions"}],"predecessor-version":[{"id":25244,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18356\/revisions\/25244"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=18356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=18356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=18356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}