Delhi tribunal rules on non-operating income
June 08, 2010
The Delhi bench of the Income-tax Appellate Tribunal has upheld the exclusion of non-operating incomes like interest, dividends and income from share trading while determining profit margin under the transactional net margin method (TNMM).
The tribunal also concluded in the case of Chrys Capital Investment Advisors India (2010-TII-11-ITAT-DEL-TP), that in case expenses incurred by a taxpayer on behalf of associated enterprises (AEs) are included in operating costs, any reimbursement pertaining to such expenses must be included in operating revenue while computing profitability under the TNMM method.
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