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| The Tax Publishers2019 TaxPub(DT) 7945 (Ahd-Trib) : (2019) 202 TTJ 0845 : (2019) 076 ITR (Trib) 0449 INCOME TAX ACT, 1961
Section 10A Section 92C
Although section 10A is a code, same is limited to the manner of computation of deduction for income of eligible undertaking. Even if income of assessee was exempted under section 10A, it still fitted in the definition of 'income' given under section 2(24). Since the word 'income' is used under section 92(1) the basic requirement of Chapter X was fulfilled and it would correspondingly apply in case of assessee and thus, arm's length price on international transactions deserved to be determined under section 92C.
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Transfer pricing - Applicability of Chapter X - Assessee being a section 10A company -
Assessee company engaged in business process outsourcing (BPO) services entered into transactions with AE abroad. AO made reference to TPO in terms of section 92CA and TPO suggested ALP adjustment. Assessee contended that it was section 10A company and section 10A being a complete Code in itself, provisions of Chapter X, i.e., transfer pricing (TP) provisions could not be invoked.Held: Although section 10A is a code, same is limited to the manner of computation of deduction for income of eligible undertaking. Even if income of assessee was exempted under section 10A, it still fitted in the definition of 'income' given under section 2(24). Since the word 'income' is used under section 92(1) the basic requirement of Chapter X was fulfilled and it would correspondingly apply in case of assessee and thus, arm's length price on international transactions deserved to be determined under section 92C.
Distinguished:Aztec Software & Technology Services Ltd. (' ASTSL') 107 ITD 141.
REFERRED : Camiceria Apparels India (P.) Ltd. v. Asstt. CIT (2019) 103 Taxmann.com 238 (Mad) : 2019 TaxPub(DT) 1882 (Mad-HC), Veer Gems (2012) 204 Taxman 16 (Guj) : 2012 TaxPub(DT) 612 (Guj-HC) and CIT v. Lalita Ashram Trust 9 Taxmann.com 243 (P&H).
FAVOUR : Against the assessee.
A.Y. : 2006-07 to 2008-09
IN THE ITAT, 'SPECIAL BENCH' AHMEDABAD
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