TaxTMI 
TaxTMI 
2015 (6) TMI 361
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....have been sustained by Ld. CIT(A), are assailed. For the sake of convenience Ground No.2 is reproduced below: "2. The Hon'ble DRP-1, Mumbai erred in law and on facts and circumstances of the case in restricting addition to Rs. 1,56,92,220/- (consisting of Adjustment u/s. 92CA 87,35,057, employees Contribution to PF & ESIC Rs. 20,85,163/- and Addition of Interest u/s. 41(1) of Rs. 48,72,000/-) against the original assessment where in Adjustment u/s. 92CA was of Rs. 1,45,10,908/- and ESIC and PF amount was of Rs. 20,65,183/- and Interest amount of Rs. 48,72,000/-) and thereby partially sustaining the addition made by the Ld. A.O of Rs. 2,14,68,071/-. 2. As it can be seen from the above ground, the assessee is agitating three following a....
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....he disallowance as all the payments are made before due date of filing of the return. 4. With regard to addition made under section 41(1) of the Act it was submitted by Ld. AR that the assessee has already offered this income in earlier assessment years and reference in this regard was made to the submissions made before DRP, copy of which is filed at page 120 to 122 of the paper book, wherein with regard to addition of Rs. 48,72,000/- the submissions of the assessee are as under: " Item No 4 Addition of Interest u/s 41(1) of Rs. 48,72,000/- The Company is in the business of exports. Once goods are shipped the bills are discounted with Indian Bank .The company debits the interest .when the bills are realized the interest is recover....
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.... from other sources. (Please refer Balance Sheet Schedule I). This amounts to total of Rs. 45,83,134/- (Rs.22,97,035/-/22,86,099) The Company has accounted for balance of Rs. 3,22,553/ in the next year.( Annexure J) As the income is already accounted (Please refer Computation of Income Annexure K and Assessment Order for the same year in Annexure C) it can not be added back again leading to double taxation of the same income. As the Learned Officer has not given enough time, the company was not able to put this on records and now humbly request yourselves to consider it and take it on records. As the company has already offered for tax the amount of Rs. 48.72 lacs in its published accounts, there can be no further addition required....
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....5-06 Method Adopted 1. Purchase of raw materials M/s. Diastar Inc. USA 78,488,653 Cost Plus Method 95,240,771 CUP 2. Export of finished stock M/s. Diastar Inc. USA 136,218,718 -do- 171,108,977 Cost Plus 3. Goods and consumable imported M/s. Diastar Inc. USA 4,915,679 -do- 1,385,964 -do- Total 219,623,050 26,77,35,712 7.1 The assessee bench marked its transaction on the basis of Cost Plus Method. From the details, it was noticed by the TPO that out of total sales of Rs. 40.40 crores sales made to the AE were Rs. 14.84 crores as against non-AE sales of Rs. 25.56 crores. Thus, proportion of sales of the assessee....
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....f recovery and has given bulk orders, wherein the assessee had to incur lesser expenses for producing jewellery goods. Ld. DRP found merit in the submissions of the assessee with regard to geographical difference and bulk sales and considering this aspect Ld. DRP has restricted the margin to 30% in place of 35.18% adopted by the TPO. 7.3 After narrating the facts, it was submitted by Ld. AR that due to non-availability of proper employees in the company, the matter could not be effectively represented either before TPO or before Ld. DRP. It was submitted that the same method has been adopted by the assessee from year to year and no TP adjustment has been made in any of the previous year where similar international transactions of the ass....