https://www.taxtmi.com/caselaws?id=754991 The ITAT Chennai ruled on multiple transfer pricing and tax issues for an IT services company. In TP adjustments, several comparables were excluded including Acropetal Technologies (due to SEBI fraud findings), Vama Industries (different business segments), L&T Infotech (size disparity), and others for operational differences. The tribunal remanded foreign currency loss treatment to AO for fresh determination based on loan utilization purpose. Provision for obsolete inventory was disallowed as mere provisioning without actual disposal. Repair and maintenance expenditure was deemed capital due to workspace expansion. Stamp duty on lease agreements was allowed as revenue expenditure. Higher depreciation at 60% was permitted for printers/scanners and software used with computers. TDS disallowance on secondment payments was deleted, treating them as salary reimbursements rather than technical service fees. en-us Tue, 11 Jun 2024 00:00:00 +0530 Tue, 02 Jul 2024 15:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754991 The ITAT Chennai ruled on multiple transfer pricing and tax issues for an IT services company. In TP adjustments, several comparables were excluded including Acropetal Technologies (due to SEBI fraud findings), Vama Industries (different business segments), L&T Infotech (size disparity), and others for operational differences. The tribunal remanded foreign currency loss treatment to AO for fresh determination based on loan utilization purpose. Provision for obsolete inventory was disallowed as mere provisioning without actual disposal. Repair and maintenance expenditure was deemed capital due to workspace expansion. Stamp duty on lease agreements was allowed as revenue expenditure. Higher depreciation at 60% was permitted for printers/scanners and software used with computers. TDS disallowance on secondment payments was deleted, treating them as salary reimbursements rather than technical service fees. Case-Laws Income Tax Tue, 11 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754991