Resale price method upheld for distribution; assessee's margins accepted and certain transfer-pricing adjustments deleted due to documented reimbursem...
The ITAT set aside the impugned disallowances and allowed the claimed deductions. The tribunal deleted the disallowance under s.14A r.w.r.8D, applying the principle that major expenditures must correlate with exempt income. Disallowances of brokerage payments were held to be ordinary course business expenses for entities engaged in commercial property leasing and were deleted where TDS evidence was furnished. Denial of deduction under s.80IAB for car-parking rental income was reversed, the tribunal finding no distinguishing facts to deny the incentive. Settlement fees paid on premature termination of service contracts were characterized as revenue expenditure incurred for commercial expediency (not capital acquisition) and allowed. The ITAT therefore ruled in favour of the assessee on the contested adjustments.
The ITAT set aside the impugned disallowances and allowed the claimed deductions. The tribunal deleted the disallowance under s.14A r.w.r.8D, applying the principle that major expenditures must correlate with exempt income. Disallowances of brokerage payments were held to be ordinary course business expenses for entities engaged in commercial property leasing and were deleted where TDS evidence was furnished. Denial of deduction under s.80IAB for car-parking rental income was reversed, the tribunal finding no distinguishing facts to deny the incentive. Settlement fees paid on premature termination of service contracts were characterized as revenue expenditure incurred for commercial expediency (not capital acquisition) and allowed. The ITAT therefore ruled in favour of the assessee on the contested adjustments.
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