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2011 (7) TMI 143 - AT - Income TaxArms length price - assessee is engaged in the business of manufacturing and sale of pharmaceutical products and formulations - During the course of assessment proceedings, the assessee-company furnished various details in support of income declared and claims made in the return of income - It was found by TPO that the assessee has over invoiced purchases from its AEs with respect to Netilimicin Sulphate and Mometasone Furoate - DRP noted that in the case of manufacture and sale of medicines, they have to go through stringent quality control norms in respect of each medicine whether general or otherwise irrespective of the cost to user of the medicines and, therefore, the argument that manufacturers which were considered as comparable were of inferior quality is not a valid argument - It is an undisputed fact that similar issue that arose in the preceding years has not yet attained finality and is pending before learned CIT(A) - Since the various arguments now putforth by the learned counsel for the assessee requires verification at the level of the Assessing Officer, we in the interest of justice deem it proper to restore the issue relating to ALP adjustment of Rs. 3,09,21,351to the file of the Assessing Officer for fresh adjudication Regarding upward adjustment - in relation to international transaction of import of formulations is concerned, this in our opinion also requires fresh adjudication at the level of the Assessing Officer in view of various distinguishing features brought before us by learned counsel for the assessee in the synopsis and the list of fresh searches for the same financial year - Appeal is allowed by way of remand
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