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2019 (5) TMI 1706 - ITAT DELHITransfer Pricing (TP) adjustments - selection of comparable - TPO rejected all the comparables selected by the taxpayer and on the basis of fresh search chosen - TPO has not given adjustment claimed by the taxpayer on account of capacity utilization and customs duty - The taxpayer carried the matter before the ld. DRP by way of filing objections who has retained the final set of comparables chosen by the TPO by dismissing the objections raised by the taxpayer. Held that:- TPO/DRP are required to provide working capital adjustment and risk adjustment to the taxpayer as well as comparable company to bring them at par with each other. Further, TPO is directed to identify all the fixed expenses including depreciation and to adjust the same in capacity utilized by exercising his powers available under the Act by calling information qua the capacity utilization by comparable companies. Following the order passed by the coordinate Bench of the Tribunal in taxpayer’s own case for AY 2011-12 [2019 (4) TMI 412 - ITAT DELHI], we direct the TPO to examine if non-cenvat-able customs duty of import paid by the taxpayer is materially affecting the PLI of taxpayer company as per mandate of Rule 10B(3) then suitable adjustment be provided to the taxpayer.
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