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| The Tax Publishers2020 TaxPub(DT) 0610 (Pune-Trib) INCOME TAX ACT, 1961
Section 10A
Incremental income was offered by assessee itself in modified return in accordance with the APA, it could not be equated with computation of income under sections 92C/92CA, as later provisions talks of making some transfer pricing addition by the AO. The suo motu offering of additional income by assessee pursuant to APA was of the same nature as assessee itself offering some transfer pricing adjustment in original return of income. In that case also, deduction under section 10A, if otherwise permissible, would be allowed and not curtailed as it would not be a case of transfer pricing addition made by AO. In the same manner, deduction under section 10A could not be disallowed in respect of additional income offered in modified return as it was not a transfer pricing addition made by the AO but additional transfer pricing income offered by assessee in consonance with APA with CBDT.
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Deduction under section 10A - Allowability - Incremental income offered by assessee in modified return in accordance with APA with CBDT -
Assessee claimed deduction under section 10A in respect of incremental invoicing pursuant to Advance Pricing Agreement with CBDT.Held: As per scheme of assessment under section 92CD pursuant to APA, assessee was mandated to file modified returns in consonance with APA. However, incremental income was offered by assessee itself in modified return in accordance with the APA, it could not be equated with computation of income under sections 92C/92CA, as later provisions talks of making some transfer pricing addition by AO. Suo motu offering of additional income by assessee pursuant to APA was of the same nature as assessee itself offering some transfer pricing adjustment in original return of income. In that case also, deduction under section 10A, if otherwise permissible, would be allowed and not curtailed as it would not be a case of transfer pricing addition made by AO. In the same manner, deduction under section 10A could not be disallowed in respect of additional income offered in modified return as it was not a transfer pricing addition made by the AO but additional transfer pricing income offered by assessee in consonance with APA with CBDT.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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