|The Tax Publishers2020 TaxPub(DT) 4934 (Bang-Trib)
INCOME TAX ACT, 1961
Assessee was eligible for deduction under section 10AA in respect of voluntary Transfer Pricing adjustment made by it.
Deduction under section 10AA - Allowability - Suo motu transfer pricing adjustment made by assessee -
Assessee claimed deduction under section 10AA on transfer pricing adjustment made by assessee voluntarily. AO denied this as per proviso to section 92C(4). Held: In the instant case, assessee itself had computed arm's length prices and has disclosed income on the basis of arm's length prices. It was not a case, where there was enhancement of income due to determination of arm's length price. Accordingly, proviso to section 92C(4) did not get attracted and assessee was therefore, entitled to deduction under section 10AA on account of suo moto adjustment on account of transfer pricing provisions.
Followed:AT Kearney India (P) Ltd. [ITA No. 2623/Del/2015, dated 21-6-2019] : 2019 TaxPub(DT) 4585 (Del-Trib).
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, BANGALORE BENCH
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