The Tribunal\u00a0 held that the assessing officer had computed the excess deduction under section\u00a010A\u00a0of the Act based on the arm\u2019s length price-based profit of the information technology-enabled services rendered vis-\u00e0-vis the assessee\u2019s actual profit from such services. The assessee\u2019s associated enterprise being a U. K. company, was not chargeable to tax in India. In other words, if the assessee had suo motu offered higher income in its hands, which was albeit deductible under section\u00a010A, without conferring any corresponding benefit to its associated enterprise in terms of higher deduction of expenditure, the disallowance of excessive deduction under section\u00a010A\u00a0would not be justified. (A.Y. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 10A : Free trade zone-Disallowance of difference between profit declared by Assessee Arm\u2019s Length Profit-Not Justified. <\/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-35550","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9fo","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35550","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=35550"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35550\/revisions"}],"predecessor-version":[{"id":35551,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35550\/revisions\/35551"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}