Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1199 - BOMBAY HIGH COURTReference to the Transfer Pricing Officer(TPO) - ascertain the correct Arm Length Price(ALP) of the transactions - grievance of the Revenue before us is that the Tribunal could not have restricted the application of the ALP only to International Transaction entered into by the Respondent- Assessee with its A.E. - Held that:- Grievance of the Revenue is no longer res integra, as this Court has in CIT v/s M/s Tara Jewels Exports Pvt Ltd [2015 (12) TMI 1130 - BOMBAY HIGH COURT] and CIT v/s Thyssen Krupp Industries India Pvt Ltd [2015 (12) TMI 1076 - BOMBAY HIGH COURT ] has taken a view that the ALP adjustment arrived at is only to be restricted to the international transaction entered into by the Respondent and could not apply to transactions entered into with non-A.E. This is for the reason that in terms of Chapter-X of the Act the mandate is to redetermine the consideration only with regard to International transaction with A. E. We find that the impugned order has merely laid down the principles to be applied for the purposes of transfer pricing adjustment by restricting the same only to the international transactions entered into with the A. E. No fault can be found with the impugned order of the Tribunal in restoring the issues to the Assessing Officer for fresh consideration after laying down the parameters of its consideration. Accordingly, Question No.(A) as formulated does not give rise to any substantial question of law Appeal is admitted on substantial Question No.(B):- Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in coming to the conclusion that AO/TPO were not justified in excluding gain on foreign exchange fluctuation from the total revenues for the purpose of computing OP/OC?
|