TMI Blog2014 (4) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... e their significance, unless, it is pointed out that such quotations lack basis - the only objections with the TPO was to take into consideration the rate quotations of the Oil World were, that were not based in Malaysia and that it was an independent organisation, which had nothing to do with the old price prevailing in Malaysia - When the CIT (A) as well as the Tribunal have accepted the reliability and authenticity of the organisation and its publication of rate list, such objection of the TPO must be overruled – thus, there was no substantial question of law arises for consideration – Decided against Revenue. - Tax Appeal No. 240 of 2014 - - - Dated:- 7-4-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Petitioner : Mr. MR Bha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Questions B to D pertain to computation of Arms Length Price. The Transfer Pricing Officer (hereinafter referred to as the TPO ) adopted Comparable Uncontrolled Prices (CUP) method. In the process, the assessee had presented two sets of prices claiming them to be comparable. One set of transactions relied on by the assessee was supplied by Malaysian Palm Oil Board (hereinafter referred to as 'the MPOB'). Simultaneously, the assessee also relied on the quotations by one Oil World, an organisation based in Germany. The assessee adopted the average of two sets of prices and claimed that the price variance between the assessee's transaction and the average of two sets of prices did not exceed 5% and, therefore, no additions w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the oil sector. This publishes daily, monthly and yearly journals in oil sector. This compiles information of various countries and, therefore, is broad based data base. The quotation adopted by the appellant from Oil World is for Malaysia and not for Germany. Therefore, it is an authentic independent trade quotations and is duly covered under the various documents which has been listed in subrule (3)(b) (c) of Rule 10D of the IT, Rules. As this is an independent organization which is giving quotation of different countries, this cannot be ignored by the TPO without any valid reason. As the international transaction entered with AE is less than 5% of the arithmetical mena of these two quotations i.e. MPOB and Oil World, as per provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 92D'. Subrule (3) provides inter alia that the information specified in subrule (1) shall be supported by authentic documents, which may include the following : Information and documents to be kept and maintained under section 92D. 10D. (1) Every person who has entered into an international transaction shall keep and maintain the following information and documents, namely : ( a) xxx xxx xxx (b) a profile of the multinational group of which the assessee enterprise is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom international transactions have been entered into by the assessee, and ownership linkages among them; (c) a broad d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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