TELELOGIC INDIA PRIVATE LIMITED,BANGALORE vs. ACIT, BANGALORE

This appeal is preferred by the assessee against the order of the CIT(A) mainly assailing the TP adjustments made by the CIT(A). This appeal was disposed off by the tribunal vide its order dated 16.03.2016. Thereafter the assessee has moved a miscellaneous application with the submission that ground No. 5(b) remains to be adjudicated. Being convinced with the contentions of the assessee, the IT(TP)A No.22/Bang/2012 Page 2 of 4 tribunal vide its order dated 17.06.2016 directed the registry to list the appeal for hearing on a limited ground i.e., 5(b), which reads as under:

Accordingly, the appeal came up for hearing and the arguments advanced by the parties were heard on this ground. During the course of hearing, the learned counsel for the assessee has contended that the TPO has not given appropriate adjustments for the specific non-operating costs incurred by the assessee. In support of his contention, that while working ALP, appropriate adjustment on non- operating costs has to be allowed, he placed the reliance upon the following judgments:

Learned counsel for the assessee has also placed reliance upon the telecalling agreement appearing at page No. 192 of the compilation and order of the TPO relating to computation of profit level indicator/operating profit/operating cost at page Nos. 99 and 100 of the order.

The learned DR on the other hand has contended that except the oral submissions, the assessee has not furnished the details relating to non-operating

Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that the appropriate adjustment for the specific non- operating cost should be allowed to the assessee while computing the operating costs and the ALP, but for verification, complete details are required to be produced before the competent authorities.

In the instant case, though the assessee has raised the submissions before the TPO and the TPO had discussed the same while computing the ALP and the PLI but before the CIT(A), neither the specific grounds in this regard was raised nor the complete details for which the assessee wants an appropriate adjustment were placed. Similar is the position before us and in the absence of complete details of non-operating costs it cannot be specifically held whether appropriate adjustment is possible or not. However, it has been repeatedly held that after making necessary verification, appropriate adjustment for the non-operating cost should be allowed while computing the ALP. Therefore, we are of the view that let this matter be examined by the CIT(A) in the light of the details of non operating costs. We accordingly restore the matter to the CIT(A) for re-adjudication of the issue.

In the result, the appeal stands partly allowed for statistical purpose.