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2017 (9) TMI 113 - ITAT DELHIAddition on account of arm’s length price - adjustment on account of cost allocation in respect to shared services from AE - comparability - comparable selected are operating since long and the assessee is in the initial stages of operation - Held that:- The assessee has pointed out specific instances which were not considered by the ld. CIT(A) and certain informations relating to comparables which were available at the time of preparing the TP study were not later on available and furnished to the ld. CIT(A), but those were not appreciated in right perspective. Moreover, from the submissions of the assessee before the ld. CIT(A) as discussed in the former part of this order, it is clear that the comparables selected by the TPO were operating since long and the assessee is in the initial stages of its operation then considerable adjustments has to be made to the operating expenses in order to give due leverage to the contribution of income to the fixed cost so as to bring it at the level playing field with the comparables. In view the decision in case of MGE UPS System India Pvt. Ltd. Vs DCIT, Circle-6(1), New Delhi (2016 (5) TMI 1387 - ITAT DELHI) deem it appropriate to set aside this case back to the file of the AO/TPO to be decided afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee. Appeal of the assessee is allowed for statistical purposes.
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