TaxTMI 
TaxTMI 
2024 (12) TMI 1166
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....he assessee against the assessment order passed u/s. 143(3) of the Income-tax Act, 1961 (the Act) dated 24.12.2019 passed by the ACIT, Circle 4(2)(1), Bangalore (ld. AO) was allowed for statistical purposes. 2. The only grievance of the ld. AO is that the ld. CIT(A) erred on facts and in law in placing reliance on the coordinate Bench decision in assessee's own case for AY 2010-11 dated 20.5.2020 in ITA No.199/Bang/2015 allowing deduction u/s. 10AA on account of voluntary adjustment made to arm's length price (ALP) of international transaction pursuant to the Advance Pricing Agreement (APA) without considering the fact that Special Leave Petition (SLP) of the ld. AO on this issue is pending before the Hon'ble Supreme Court. 3. The brief f....
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....d an order relying on the CBDT Circular No.14 of 2006 and held that disallowance u/s. 10AA can be made only when the total income is enhanced by the ld. AO or the ld. TPO. The CIT(A) also noted that the coordinate Bench vide order dated 31.8.2020 for AY 2014-15 had allowed the claim of assessee on identical facts and circumstances. Accordingly, by the appellate order dated 14.6.2024, disallowance u/s. 10AA of the Act was deleted. 5. The ld. AO aggrieved, preferred appeal before us. The appeal is delayed by 9 days on account of annual general transfer and therefore there was delay in preparation of scrutiny report and filing of appeal. The petition for condonation of delay was filed on 23.9.2024. 6. The ld. DR submitted that delay is due t....
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....t no deduction under section 10A or section 10AA or section 10B or under Chapter VI-A shall be allowed in respect of the amount of income by which the total income of the assessee is enhanced after computation of income under this sub-section." 18. On a reading of the above proviso to Section 92C(4) of the Act, it may be noted that the Act specifically denies claim of deduction under section 10AA of the Act on any adjustment made by the Transfer Pricing Officer under Section 92CA of the Act. Thus, the taxpayer is not eligible to claim the deduction under Sectionl0AA of the Act on the enhanced income on account of TP adjustment made by the TPO. However, on the contrary, increased income on account of voluntary transfer pricing adjustment o....
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....82) and Delhi Tribunal in case of AT Kearney India Private Limited (ITA No 2623/De1/2015) dated 21 June 2019 held that assessee was eligible to claim deduction under section 10AA in respect of voluntary transfer pricing adjustment made on scientific basis in the computation of income in respect of Gurgaon SEZ unit as same was not hit by proviso to section 92C(4) of the Act. 22. The ITAT Bangalore in case of IBM India Pvt Ltd (59 CCH 260) dated 31 July 2020, following the decision of Pune Tribunal in case of DAR AL Handasah Consultants (Shair & partners) India Pvt Ltd (2020) 203 TTJ 0218 (Pune), has held that deduction under section 10AA of the Act has to be allowed on incremental income arisen pursuant to APA as per modified return filed ....