ITAT Delhi Judgments — August 2017

The Tribunal allowed the assessee's appeal in part. It directed the TPO/AO to verify the applicability of internal TNMM and granted the benefit of the +/- 5% arm's length range. The disallowance under Section 36(1)(iii) was also deleted.

The Tribunal upheld the AO's action in issuing the notice under Section 148, finding that the AO had reason to believe income had escaped assessment. However, the Tribunal found the AO's estimation of the cost of acquisition to be flawed and remitted the matter to the AO for proper valuation by the DVO.