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2015 (8) TMI 981 - ITAT PUNETransfer pricing adjustment - adjustment for capacity under utilisation - Held that:- Respectfully following the case of Ariston Thermo India Ltd. (2015 (8) TMI 977 - ITAT PUNE) we are of the considered opinion that the assessee should be given the benefit of low capacity utilisation. We therefore restore the ground of appeal No.2 to the file of the AO/TPO with a direction to consider the appropriate adjustment after necessary verification on the basis of material supplied by the assessee. The Assessing Officer shall recompute such adjustment after giving due opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes. Adjustment for inappropriate calculation of TPO - Held that:- Identical issue had come up before the Coordinate Bench of the Tribunal in the case of Demag Cranes & Components (India) (P.) Ltd. (2012 (1) TMI 60 - ITAT Pune) where it has been held that TP adjustments are to be computed not considering the entity level sales rather it should be done ideally considering the relatable sales drawing the quantitative relationship to the imports from the AEs, i.e. controlled cost. The Mumbai Bench of the Tribunal in the case of Emersons Process Management India (P.) Ltd. (2011 (8) TMI 427 - ITAT MUMBAI) has held that transfer pricing adjustment is to be made with respect to international transactions and not the entire sales. Similar view has been taken by various other coordinate Benches of the Tribunal. In view of the above, we agree with the contention of the Ld. Counsel for the assessee that transfer pricing adjustment has to be made with respect to international transactions only and not on the entire sales. However, this adjustment also requires verification at the level of the Assessing Officer. We therefore restore this issue to the file of the AO/TPO with a direction to recompute the adjustment, if any, on the basis of material provided by the assessee.- Decided in favour of assessee for statistical purposes.
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