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2017 (4) TMI 1331 - AT - Income TaxTPA - comparability of certain companies selected by the TPO and consequent adjustment made in respect of ALP of international transactions - Held that:- Assessee is engaged in providing IT enabled back office services like contract administration, claim administration and technical reinsurance accounting support to its AE, thus companies functionally dissimlar with that of assessee need to de deselected from final list. Foreign exchange fluctuation gain to be treated as operating in nature - Held that:- DRP has directed the TPO to consider the foreign exchange fluctuation in respect of the assessee as well as the comparables as operating in nature. Since the assessee has contented that the TPO has not given effect to the said directions of the DRP, accordingly we direct the AO / TPO to give effect to the directions of the DRP on this issue. Incorrect margins computed by the TPO in respect of certain comparable companies - Held that:- Since we have directed for exclusion of six companies from the final set of TPO and further the directions of the DRP are to be given effect on certain issues therefore the TPO / AO is directed to recompute the arms length price after giving effect to this order of the Tribunal and also consider the benefit of proviso to section 92C(2) of the Act.
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