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2014 (11) TMI 1036 - ITAT BANGALORETransfer pricing adjustment - determination of purchases - Held that:- We accept the first fold of submission made by the assessee and direct the Assessing Officer to confine the adjustment, qua the purchases made by the assessee from the AE. To be more specific, the adjustment is to be made only to the purchases made from the AE. However, this exercise be carried out after verifying the details of purchases available of the TP study report. The Assessing Officer first determine the purchase of raw material and components from the AE and then determine the ALP having regard to the mean profit margin of comparable cases at 8.26%. Entitlement for the benefit of proviso appended to section 92C(2) - Held that:- As far as the second fold of submission is concerned, we remit this issue to the file of the Assessing Officer for re-adjudication. The learned Assessing Officer, after determination of any adjustment, if required to the value of the international transactions shall determine, whether the assessee is entitled for the benefit of proviso appended to section 92C(2). Since the learned TPO granted this benefit to the assessee with regard to the automotive component segment, it cannot be denied qua, this claim also, if the adjustment falls within the range provided in the proviso. The Assessing Officer shall look into these aspects and if so require can take the help of the TPO.
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