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2011 (8) TMI 737 - AT - Income TaxTransfer Pricing - Determination of Arm-Length - Time gap between the original contract of sale and entry of the goods at Port - TPO adopted the average of the Customs tariff rate at Port, on the date of entry -TPO had no material on record to show that price was un-comparable - Held That:- Sale contract entered into between the assessee and its AE is very much comparable to the market rate prevailed on that day as compared to the illogical comparison made by the TPO. The price fixed by the parties on the basis of sale contract is more authentic and acceptable. The difference between the assessee's invoice rate and the average Customs rate at Kandla Port is nominal. The difference goes beyond the permissible 5% range only when the TPO has adopted the average of the tariff prices at Kandla Port. In these types of bulk purchases and sales, it is always better to compare the price of individual consignment rather than on a compromise of average price.
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