ITAT Chennai Judgments — November 2016

The Tribunal held that the period shares were held as stock-in-trade should be excluded when determining long-term capital gains. Consequently, the issue was remitted to the Assessing Officer for recalculation.

The Tribunal found that the employee cost filter is a relevant factor for determining ALP. Since the impact of employee cost and manpower outsourcing was not adequately considered, the matter was remitted back to the Assessing Officer for fresh examination.

The Tribunal, considering the assessee's plea of sufficient cause for non-appearance, decided to grant one more opportunity for hearing. The matter was remitted back to the DRP for fresh consideration.

The Tribunal upheld the CIT(A)'s direction to exclude investments in subsidiary companies for computing disallowance under Rule 8D(iii). The Tribunal noted that such investments are often for business expediency rather than solely for earning dividend income.