https://www.taxtmi.com/caselaws?id=350765 The Court dismissed the appeal under Section 260A of the Income Tax Act, 1961, concerning expense allocations for a software development firm. The Court upheld the Commissioner of Income Tax (Appeals) decision to accept the allocation key based on manpower employed, rejecting the alternative key of man-hours invested. Additionally, the Court upheld the CIT(A)'s decision to reject an arbitrarily estimated GP addition of Rs. 12,04,270, emphasizing the importance of valid reasons for making estimations in expense allocations. Ultimately, the Court found no substantial question of law and dismissed the appeal. en-us Tue, 07 Nov 2017 00:00:00 +0530 Sat, 11 Nov 2017 10:56:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=350765 The Court dismissed the appeal under Section 260A of the Income Tax Act, 1961, concerning expense allocations for a software development firm. The Court upheld the Commissioner of Income Tax (Appeals) decision to accept the allocation key based on manpower employed, rejecting the alternative key of man-hours invested. Additionally, the Court upheld the CIT(A)'s decision to reject an arbitrarily estimated GP addition of Rs. 12,04,270, emphasizing the importance of valid reasons for making estimations in expense allocations. Ultimately, the Court found no substantial question of law and dismissed the appeal. Case-Laws Income Tax Tue, 07 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=350765