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2011 (8) TMI 329 - AT - Income TaxDetermination of Arm's Length Price - Comparable value - nature of services - Held that:- services are (i) new erection; (ii) machinery re-location/dismantling; (iii) Upgrade/conversion, overhaul repairs; (iv) repairs and services on electric equipment. Though the nature of services do vary, the fact remains that they broadly fall under a common category of installation services, warranty services and after-sales-services. In our opinion, the nature of services does not vary significantly. - TNMM is more broad based and the variation in the type of services, as in this case can be absorbed in this method. Comparable - the TPO failed to bring out appropriate external comparables for bench-marking the transactions - It appears that the basis of selection of a comparable depended upon the quantum of adjustment that it would permit rather than other factors - As per the Assessing Officer, it seems the stand is the higher the margin the greater the comparability - This approach has to be necessarily quashed.
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