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2018 (3) TMI 1986 - AT - Income TaxTP adjustment proposed with respect to the international transactions of export of Agricultural commodities [ Agri Based Commodities] - TPO rejected the CUP method holding that when the data was produced before him it was seen that CUP data was actually the quotations from 3rd parties and not the price charged or paid for property transferred or services provided in a comparable uncontrolled transactions as per the intent of rule 10 B - HELD THAT:- We agree with the views of the Transfer Pricing and Ld. dispute resolution panel that adequate and reliable data is a necessary ingredient of selecting any method for comparability analysis for determining arm‟s length price of an international transaction. However without examination of the evidences submitted by the assessee it is premature to state that information supplied by the assessee is not reliable, it lacks credibility or it is not enough for determination of arm‟s length price of the international transaction. We do not find any mention by the ld TPO or By LD DRP any reference of examination of these documents and then rejecting it with cogent reasons that they are not reliable, authentic or inadequate. With respect to the applicability of the quotations for CUP method, Hon‟ble Gujarat High Court in case of CIT versus Adani Wilmer Ltd. [2014 (4) TMI 563 - GUJARAT HIGH COURT] interpreting rule 10 D In the present case the Ld. Transfer Pricing Officer has not examined the evidences submitted by the assessee. Therefore, in the interest of Justice , we set aside the issue of determination of arm‟s length price of the international transactions of export of agricultural commodities to the associated enterprise back to the file of the Ld. Transfer Pricing Officer with a direction to examine the details furnished by the assessee in the form of various quotations of agricultural commodity brokers as well as other entities with respect to their authenticity, adequacy and reliability. If The Ld. Transfer Pricing Officer finds those evidences as authentic, reliable and adequate information for the purpose of determination of arm‟s length price then he is directed to adopt the CUP method for comparability analysis. The assessee is also directed to support the evidences before the Ld. Transfer Pricing Officer and to show their reliability, authenticity, and adequacy for supporting the international transaction of export of commodities. In view of this ground No. 2.5 – 2.8 of the appeal of the assessee is set aside to the file of the Ld. TPO to decide the issue afresh in accordance with above direction. Accordingly, those grounds are allowed with above direction. Adjustment made to the international transactions entered into by the assessee with respect to its business support services segment - Comparable selection - HELD THAT:- Companies functionally dissimilar with that of assessee need to be deselected.
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