IT/ILT : Where directions of DRP had not been properly considered by lower authorities, matter should be reconsidered afresh
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[2014] 51 taxmann.com 566 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'A'
Digital Juice Animations (P.) Ltd.
v.
Deputy Commissioner of Income-tax, Circle-11 (1), Bangalore*
RAJPAL YADAV, JUDICIAL MEMBER
AND ABRAHAM P. GEORGE, ACCOUNTANT MEMBER
IT (TP) APPEAL NO. 138 (BANG.) OF 2014
[ASSESSMENT YEAR 2009-10]
SEPTEMBER 5, 2014
Section 92C, read with section 144C, of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments) - Assessment year 2009-10 - Assessee had two segments of operations, one was Information Technology Enabled Services (ITES) segment and other was packaging unit segment - During course of proceedings before TPO, assessee filed a revised segmental workout through which a part of total operating cost, earlier considered as pertaining to ITES segment, was moved out of that segment and aggregated with packaging segment - TPO did not consider revised working of margin submitted by assessee - DRP had directed Assessing Officer to consider reallocation of cost made by assessee-but T.P.O. had not made any change in adjustment - Whether since directions of DRP had not been properly considered by lower authorities, order of Assessing Officer was to be set aside - Held, yes [Para 11] [In favour of assessee/Matter remanded]
■■■
[2014] 51 taxmann.com 566 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'A'
Digital Juice Animations (P.) Ltd.
v.
Deputy Commissioner of Income-tax, Circle-11 (1), Bangalore*
RAJPAL YADAV, JUDICIAL MEMBER
AND ABRAHAM P. GEORGE, ACCOUNTANT MEMBER
IT (TP) APPEAL NO. 138 (BANG.) OF 2014
[ASSESSMENT YEAR 2009-10]
SEPTEMBER 5, 2014
Section 92C, read with section 144C, of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments) - Assessment year 2009-10 - Assessee had two segments of operations, one was Information Technology Enabled Services (ITES) segment and other was packaging unit segment - During course of proceedings before TPO, assessee filed a revised segmental workout through which a part of total operating cost, earlier considered as pertaining to ITES segment, was moved out of that segment and aggregated with packaging segment - TPO did not consider revised working of margin submitted by assessee - DRP had directed Assessing Officer to consider reallocation of cost made by assessee-but T.P.O. had not made any change in adjustment - Whether since directions of DRP had not been properly considered by lower authorities, order of Assessing Officer was to be set aside - Held, yes [Para 11] [In favour of assessee/Matter remanded]
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