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2020 (7) TMI 791 - ITAT MUMBAITP Adjustment - comparable selection - exclusion of ABC Bearings from the list of comparable company - HELD THAT:- ITAT Mumbai Bench in the case of Maersk Global Service Centre India Pvt. Ltd. [2011 (11) TMI 465 - ITAT MUMBAI] has held that the company having such a high brand value along with much higher turnover, in our considered opinion has been rightly excluded by the CIT(A). Undoubtedly, in the said circumstances, the ABC Company nowhere seems comparable with the company of the assessee. Moreover, the ABC had an exceptional year of performance which shows its best ever sale of ₹ 200.27 crores representing 24% of the growth. The said margin seems non comparable in view of the decision of Lubrizol Advanced Material Vs. DCIT [2015 (10) TMI 2692 - ITAT AHMEDABAD] - We also find that the ABC does not feature in the details search undertaken by the assessee on the database Prowess and Capitaline. The TPO nowhere rejecting the selection by assessee and no reason were given for the inclusion of ABC bearing. We direct the DRP for the exclusion of the ABC Bearing for comparing from the list of comparable and to assess the transaction with the available comparable on record in accordance with law. Accordingly, the issue is decided in favour of the assessee against the revenue. Working capital adjustment for comparable companies on the basis of the difference - Assessee has raised the TNMM method in determining the ALP for the international transaction entered into during the year - HELD THAT:- We direct them to allow the requisite adjustment on account of the impugned 'working capital' while determining the Arm's Length operating Margin of the Comparables." Accordingly, this issue is decided in favour of the assessee against the revenue.
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