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2011 (9) TMI 226 - AT - Income TaxArm's length price of international transaction - Adjustment - Reference to TPO - The assessee has selected TNMM method i.e. "transactional net margin method" for determining the ALP - Learned TPO has recommended the adjustments of Rs.16,92,32,410 in the ALP of international transaction vide his order dated 30th September 2009 passed under sec. 92CA(3) of the Income-tax Act, 1961. The assessee had submitted before the learned DRP that TPO has erred in including and excluding the comparables for working the PLI, however, learned DRP has concurred with the findings of the learned TPO without taking cognizance of facts and circumstances, particularly the details of comparables produced by the assessee. The learned DRP has not assigned any reason for concurring with the learned TPO. To our mind, it is necessary for the learned DRP to consider the facts and circumstances and record reasons in support of its order so that higher appellate forum can appreciate what weigh with the collegium of three senior officers of the revenue department to concur with the conclusion drawn by the learned TPO.
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