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2010 (11) TMI 839 - ITAT DELHITP Adjustment - Computation of arm’s length price - failure to allow the appellant an option for the downward variation of 5 percent in determining the arm’s length price - HELD THAT:- The facts stated in the assessment order are very clear. The Assessing Officer is taking the entire turnover while computing the arm’s length price whereas the international transactions of the assessee constitute only 9.71 per cent of the total transactions. The matter being clear from the record itself, it is not considered proper to restore this issue to the file of CIT (A). The case of the assessee is well supported by the decision of Coordinate Bench in the case of IL JIN ELECTRONICS (I) (P.) LTD. VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-11(1), NEW DELHI [2009 (11) TMI 669 - ITAT DELHI], where it was held that the Assessing Officer directed to modify the assessment and make the adjustment only to the extent of difference in the arm’s length operating profit with adjusted profit with reference to the 45.51 per cent of the turnover, and not to the total turnover of the assessee. - Applying the said ratio, the Assessing Officer are directed to modify the assessment and make the adjustment only to the extent of difference in arm’s length price operating profit with adjusted profit with reference to 9.71 per cent of the turnover and not to the total turnover of the assessee. Grant of 5 per cent profit - HELD THAT:- The issue is also supported by the aforementioned decisions relied upon by ld. AR. Therefore, the Assessing Officer are directed to give the said adjustment also to the assessee. We direct the Assessing Officer to go through the figures shown in the chart and if the chart prepared by the assessee is in accordance with the aforementioned directions, then, the Assessing Officer will compute the arm’s length price as per the aforementioned chart and give proper relief to the assessee - The appeal filed by the assessee is partly allowed for statistical purposes.
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