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2015 (4) TMI 1201 - AT - Income TaxTransfer pricing adjustment - MAM - whether while adopting the TNMM method, the entity level margin is to be adopted or only the margin of software development activity is to be considered separately from the margins of the Bio-Division which has sustained loss? - Held that:- We are of the opinion that only international transactions with Associated enterprises have to be considered for ALP adjustment. When Bio division does not have any international transactions with AEs, profit or loss from said division should not affect ALP of the international transaction in another division. Since neither the AO nor the CIT(A) have really examined the assessee’s contention that there was no international transactions with AE’s in the Bio division but have just combined the results of both software development as well as bio division for determining the ALP of the international transaction, we deem it fit and proper to set aside the order of the AO/TPO and remand the matter back to the AO with a direction to refer the matter to the TPO for re-consideration. The AO/TPO shall examine the assessee’s contention and after verifying the details, shall recompute the ALP of the international transaction u/s 92CA of the Act. - Decided in favour of assessee for statistical purposes
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