2024 (11) TMI 1481

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is applicable. ITA No. 558/Coch/2019 "1. The Ld. Commissioner of Income tax (Appeals)-II, Kochi erred "in allowing the risk adjustment in case of exports @2% in place of 1% as allowed by TPO and in allowing Commission on Corporate Guarantee on the gross loan limit and not on the actual loan availed". 2. On the issue of risk adjustment, CIT(A) failed to appreciate that the TPO had already discussed the factors such as sale commission, credit risk to the assessee, volume discounts etc. passing the order u/s 92CA(3) of the Income-tax Act. 3. The CIT(A) ought to have noticed that TPO rejected appellant's claim citing that the appellant has not conducted any meaningful study commodity wise and AE wise on the vol....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....estored." 2. Fact in brief is that revenue has raised ground of appeal against the decision of ld. CIT(A) in allowing the risk adjustment in the case of exports @2% in place of 1% as allowed by TPO and in allowing commission on corporate guarantee on the gross loan limit and not on the actual loan availed. 3. Heard both the sides and perused the material on record. In respect of allowing the risk adjustment in case of exports @2% in place of 1% as allowed by the TPO, we find that this is a recurring issue and assessee has claimed similar adjustment in the earlier years and the department has accepted the such claim of risk adjustment until A.Y. 2007-08. In the A.Y. 2008-09, the claim of risk adjustment was denied to the assessee howev....