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2011 (1) TMI 97 - AT - Income TaxArm’s length price - The assessee is a foreign company having a branch office inIndia and also has an associate enterprise (AE) - M/s. Intel Technologies India Pvt. Ltd. (ITIPL) - and primarily engaged in providing sales and marketing support service - Since the Indian branch of the assessee is sold as a going concern, will it result in any consequence to determine the method to be adopted in valuing the assets of the assessee - The assessee has determined the value of the assets sold in accordance with the certificate issued by the Chartered Engineer and Registered Valuer. The valuation based on the WDV worked out as per the Income Tax Act will be most appropriate since the valuation report of the Registered Valuer and Chartered Engineer is rejected. The valuation report of the Registered Valuer and Chartered Engineer requires to be rejected is justified The Indian Branch of the assessee is sold as a going concern. - this fact will also have some consequences in determining the ALP because factors like profitability of the branch office, goodwill, and various other commercial and technical aspects will have a bearing when the AE takes over the branch office of the appellant. However, neither the Ld. AO nor the Ld. CIT(A) have made any reference on any factors on this regard in this given case and, therefore, matter remanded back to AO.
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