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2012 (11) TMI 347 - ITAT MUMBAITransfer pricing adjustment - inclusion and exclusion of the various comparable companies by applying different filtration criteria - Held that:- The first criterion of filtration adopted by the TPO for selecting the comparable companies by applying a search criteria of "Sales trading / Total sales exceeding 75%" is correct and the second filtration criterion for selection of comparables should be the companies having export sales of around 13% of the total sales be adopted. With regard to the elimination of Oregon Commercials Ltd., by the TPO, it is found that the reasoning given by the TPO is not correct as the TPO has clearly relied on the data of that company for F.Y. 2003-04, which is clearly violative of Rule-10B(4), which prescribes that the data to be used for comparison shall relate to the financial year of International Transaction and data relating to not more than two years prior to such F.Y., therefore, the said company should be taken into consideration after adopting the above two selection criteria - restore the matter to the file of the TPO and direct him to compute the assessee's average gross profit margin in determining the ALP in accordance with the observations made above - Revenue's appeal partly allowed for statistical purposes.
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