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ITAT remanded issue of quantification to TPO to be addressed on facts
ITAT remanded issue of quantification to TPO to be addressed on facts
Toshiba India Pvt Ltd filed itts tax return and disclosed international transactions with its AE. AO passed an order u/s 143(3) r.w.s 144C against the assessee on issue of distributor expenses. The matter reached the High Court, which remanded it to Tribunal. ITAT held that issue on quantification was not addressed by DRP as it was rejected on first principles itself. It remanded the issue to TPO to be addressed on facts.-500623
1. Toshiba India Pvt Ltd was a wholly owned subsidiary of Toshiba Corporation, Japan and had trading operations in consumer durables and IT products.
2. It returned an income of Rs.16,08,68,450 and disclosed international transactions with its AE.
3. AO passed an order u/s 143(3) r.w.s 144C against the assessee.
4. The matter reached the High Court, which remanded it to the Tribunal.
The ITAT held as under:
5. It is seen that the said issue on quantification was not addressed by the DRP as on first principles itself the stand was rejected.
6. Before the ITAT also in the first round as is evidenced from the extract in para 2 of this order the issue was not examined.
7. Thus the issue necessarily has to be remanded back to the TPO as it needs to be addressed on facts.
8. The assessee is necessarily required to place its claim of Distributor expenses backed by relevant documents and evidences whose correctness then needs to be verified by the TPO.
Case Reference - Toshiba India Pvt.Ltd vs DCIT.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: 'I' NEW DELHI
BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND
SH. T.S.KAPOOR, ACCOUNTANT MEMBER
I.T.A .No.-1053/Del/2014
(ASSESSMENT YEAR-2009-10)
