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TMI Blog2016 (11) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... alls within the Arm’s length price range of ± 5%. In any case, also even if entity level margins of 6.47% and the margin earned by the comparable companies at 8.3% (as per the DRP’s direction) is taken into consideration, the ld counsel before us has pointed out that, then also it falls within the variation of +/- 5%. - ITA No. : 1820/Mum/2015, Cross Objection No. 68/Mum/2015 - - - Dated:- 14-9-2016 - SHRI R C SHARMA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER For The Assessee : Shri M P Lohia For The Revenue : Mrs. Rupidner Barar The aforesaid appeal and cross objection has been filed by the revenue as well as assessee against DRP s direction dated 10.12.2014 passed under section 144C(5) in pursuance of which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rating margin (operating profit/operating cost) of 7.81% was disclosed by the assessee from its AE contracts (based on segmental financials) which was compared with the margins of external comparables arrived at 7.64% and hence it was reported to be at arm s length. However, while passing the transfer pricing order the Transfer Pricing Officer ( TPO ) has computed margin of the Assessee at entity level at 6.47% instead of the segmental approach by the assessee in its transfer pricing study report without providing any reason for such a rejection. The Ld. DRP in its directions has relied on the ITAT order in assessee s own case for the AY 2006-07 and AY 2008-09 and has directed the TPO to consider the segmental financials submitted by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that, then also it falls within the variation of +/- 5%. Thus, on these facts alone, we hold that there is no substance in the grounds raised by the revenue and therefore, same are dismissed. 4. In the Cross objections, the assessee has raised following grounds:- On the facts and in the circumstances of the case as well as in law, the earned AO/ transfer pricing officer (TPO); Segmental results 1) erred in baking a ground that segmental results computed by the TPO are more authentic and precise without appreciating that the TPO had considered entity level results and not segmental results of international transactions of assessee for determination of arm s length price; 2) Without prejudice to the above , ..... X X X X Extracts X X X X X X X X Extracts X X X X
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