Transfer pricing comparability under TNMM: foreign exchange loss on ECB excluded from operating cost, and a functionally dissimilar comparator removed...
The ITAT upheld the validity of the reassessment order under section 147 read with section 143(3), finding sufficient new material and reasons to believe that income had escaped assessment for AY 2012-13 based on investigation reports and non-compliance by the assessee. The tribunal rejected the assessee's contention of change of opinion and improper assumption of jurisdiction. However, additions made under section 68 regarding the identity, creditworthiness, and genuineness of share application money were set aside for fresh inquiry, as the AO had not fully verified the parties involved. The AO was directed to conduct further enquiries and provide the assessee with reasonable opportunity of being heard. Additionally, the matter concerning alleged accommodation entries based on the Inspector's report was remanded for reconsideration, with instructions to furnish the report to the assessee and allow them to respond. Grounds relating to these issues were allowed for statistical purposes, while others were dismissed.
The ITAT upheld the validity of the reassessment order under section 147 read with section 143(3), finding sufficient new material and reasons to believe that income had escaped assessment for AY 2012-13 based on investigation reports and non-compliance by the assessee. The tribunal rejected the assessee's contention of change of opinion and improper assumption of jurisdiction. However, additions made under section 68 regarding the identity, creditworthiness, and genuineness of share application money were set aside for fresh inquiry, as the AO had not fully verified the parties involved. The AO was directed to conduct further enquiries and provide the assessee with reasonable opportunity of being heard. Additionally, the matter concerning alleged accommodation entries based on the Inspector's report was remanded for reconsideration, with instructions to furnish the report to the assessee and allow them to respond. Grounds relating to these issues were allowed for statistical purposes, while others were dismissed.
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