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2014 (7) TMI 948 - AT - Income TaxTransfer pricing adjustment – Indenting transactions - Held that:- The ‘Indenting transactions’ are different from ‘Trading transactions’ in terms of functional differences, risks undertaken and assets employed, and hence both cannot be considered as uniform - Following the decision in Sumitomo Corporation India P. Ltd. Versus Deputy Commissioner of Income-tax [2013 (12) TMI 594 - ITAT DELHI] - commission earned by the assessee from its AEs under the ‘Indenting segment’ was required to be benchmarked on the basis of commission earned by the assessee from non-AEs under ‘Indenting segment’ - the commission percentage from AE transactions should be benchmarked on the basis of commission rate from non-AE transactions under the ‘Indenting business’ - the commission percentage on the basis of FOB value of goods from transactions with non-AEs be computed and taken as arm’s length rate of commission for the purposes of the transactions with AEs under the ‘Indenting business’ segment - the rates of commission are not emanating from the orders – thus, the matter is remitted back to the AO/TPO to find out the rate of commission income on FOB value of the transactions with non-AEs under the ‘Indenting business’ segment – Decided partly in favour of Assessee.
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