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2016 (8) TMI 1292 - AT - Income TaxTPA - selection/rejection of comparables - Held that:- Assessee is engaged in providing data processing and back office support service including payment processing, data processing, documentation processing, investigation related services and trade processing service to its A.E. only. Thus, in a sense, the assessee is a purely captive service provider. thus companies functionally dissimalir with that of assessee need to be deslected from final list. Claim of risk adjustment - Held that:- We have noted that the assessee in its Transfer Pricing study has claimed risk adjustment which is evident from the order of the Transfer Pricing Officer. In fact, the Transfer Pricing Officer has also observed that the assessee appears to bear some amount of risk, such as, single customer risk. However, he has rejected assessee’s claim primarily for the reason that the assessee has not properly quantified the risk adjustment. As far as the learned Commissioner (Appeals) is concerned, he has not given any independent finding but has simply endorsed the view of the Transfer Pricing Officer. Thus we are inclined to restore the issue relating to risk adjustment to the file of the Transfer Pricing Officer/Assessing Officer for deciding afresh keeping in view in the decisions relied upon as referred to herein before and after due opportunity of being heard to the assessee.
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