BMW INDIA PVT. LTD. Vs. ACIT

JUDGEMENT

(1.) THE present appeal filed by the assessee is arising out of the assessment order u/s. 144C/143(3) dated 18.12.2013 passed by the AO in pursuance to the order dated 27.11.2013 by the Dispute Resolution Panel -III, New Delhi. The assessee before us has raised the following grounds: -

(2.) FURTHER , the Ld. DRP/AO erred in enhancing the income of the appellant by Rs. 3.12 crores by holding that the transaction pertaining to receipt of Information Technology ('IT') support services does not satisfy the arm's length principle envisaged under the Income -tax Act, 1961 ('the Act') and in doing so grossly erred in:

(3.) WITHOUT prejudice to the above, the Ld. AO has erred in law and on facts and circumstances of the case, in disallowing an amount of INR 0.48 crores towards the depreciation allowance on individual assets so reclassified by calculating depreciation on the original cost of the assets instead of the Written Down Value ('WDV') and without appreciating that depreciation allowance of only INR 0.17 crores has actually been claimed on such assets in the return of income, where computed on a standalone basis.