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II. Direct Tax Case laws:
1. CIT Vs. Stratex Networks (India) Pvt. Ltd., ITA No. 353/2011, Judgment delivered on: 06.05.2013, Delhi High Court
Decision: In favour of Assessee.
Section: 92C of Income Tax Act, 1961
Assessment Year: 2004-05
Whether
the related domestic transactions can be considered while determining
Profit Level Indicator for the purpose of Arm’s Length Price of
International Transaction
Held No
When
the transactions were held not to be international transactions as
contemplated under section 92B(1) and they were also not deemed
international transactions u/s 92B(2) of the Act, profit from those
activities cannot be considered for determining Arm’s Length Price. It
was held that TPO had not applied proper comparables while working out
the profit level indicator of comparables.
(Please click here for judgment)
2. CIT Vs. Punjab Agro Industries Corporation Ltd., ITC No.
77 of 1999, Date of Decision: 14.03.2013, Punjab & Haryana High
Court
Decision: In favour of Revenue
Section: 154 of Income Tax Act, 1961
Assessment Year: 1988-89
Whether
order u/s 154 of the Act holds good in law in absence of providing
reasonable opportunity to the assessee where it is passed for correction
of calculation error in the order
Held Yes
Calculation
error in final computation of total income could be very well rectified
u/s 154 of the Act and such rectification does not require an
opportunity to be given to assessee where reason for disallowance was
provided in the Assessment order by way of detailed discussion.
(Please click here for judgment)
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