TaxTMI 
TaxTMI 
2016 (12) TMI 1819
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....her fourteen grounds of which grounds No.1 & 14 are general in nature needing no specific adjudication. Ground No.13 is on levy of interest u/s.234B and 234C of the Act which are consequential in nature. 3. Vide its Grounds 2 to 4, assessee assails the Transfer Pricing adjustments made with regard to engineering services rendered by the assessee to its Associated Enterprises abroad and imputing of interest on alleged delay in collection of receivables from Associated Enterprises. Apart from this, assessee has also raised certain corporate tax grounds which assails disallowances of employee's contribution to Provident Fund, disallowance u/s.14A of the Act, disallowance of depreciation on goodwill and not giving credit for tax deducted at s....
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....llection of receivables. 5. On the corporate tax grounds, the ld. Authorised Representative alluding to the disallowance of employee's contribution to Provident Fund submitted that the ld. DRP had failed to consider the law as it stood now, which clearly admitted such allowance of the remittances when made before the due date for filing the return. As for the disallowance u/sec. 14A of the Act, ld. Authorised Representative submitted that an erroneous presumption was taken by the ld. DRP that loan funds were utilized for making investments which yielded tax free income. Coming to the claim of depreciation on goodwill which was not allowed, ld. Authorised Representative submitted that whether assessee had preferred such a claim was immater....
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....ting Engineers Ltd 29.52% 11 TCE consulting engineers ltd. 26.27% 12 Kitco Ltd 27.45% 13 IBI Cehmatur Engg & Consultancy Ltd 25.96% Average margin on cost of comparables. 14.33% The adjustment proposed by the ld. TPO based on the above PLI was as under:- OP/OC of the assessee company (A) 7.61% Average Margin of comparables (B) 14.33% Difference in margins (C) 6.72% Value of Intl. transaction for Eng & design Services 28,11,30,900 Expected OP Profit @14.33% 29,86,86,886 Upward Adjustment proposed 1,75,55,986 8. Before ld. DRP assessee had assailed the computation of PLI of the selected companies which according to assessee was made disregarding the annual report of such companies. The said ground was de....
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....sition of the comparables were not furnished by the assessee and hence it's request for granting such adjustment could not be granted. In so far as imputing interest on delayed payment from Associated Enterprise was concerned, observation of the ld. DRP was that the extended payment terms given to Associated Enterprise without charging interest was exigible to a transfer pricing adjustment, even if commercial expediency was shown by the assessee. As for assessee's claim for depreciation on goodwill, observation of the ld. DRP was that no such disallowance made by the ld. Assessing Officer and no claim was preferred by the assessee during the assessment proceedings. Coming to the disallowance for delayed remittance of employee's contribution....