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2015 (4) TMI 752 - ITAT DELHIDetermination of Arm length Price (ALP) in International transactions - Rejection of comparables, resulting determination of higher operating profit - Comparable should be similar to the tested party's function - Held that:- We have considered the rival submissions and have perused the record of the case. There is no gain saying that unless the comparable is functionally similar to the tested party’s function, the same cannot be included in the list of comparables for computing ALP as per the provisions of Rule 10B(2)(b). Ld. DRP while considering the comparable Wapcos, inter alia, observed that neither the department nor the assessee has found any consultancy comparables in the tourism sector. Therefore, it becomes imperative that only those comparables should be taken into consideration which have close similarity with the functions carried out by tested party. Accordingly, in view of above discussion, we direct the AO to exclude the above three comparables from the list of comparables selected by him. Ld. counsel pointed out that after exclusion of above three comparables from the list of comparables, the PLI would come within (+)(-) 5% range and, therefore, this ground has become academic. - Relating to levy of penalty, is premature and stands rejected accordingly.he charging of interest u/s 234A/B/C is consequential. The AO shall recalculate the charging of interest, if any, while giving effect to appellate order. - Decided partly in favour of assessee.
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