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2012 (4) TMI 356 - AT - Income TaxArm's length price - Reference to TPO - TPO passed the order on 16.10.2008, in which upward revision of Rs. 2,95,42,104/- was suggested for bringing the value of the transactions in line with the ALP - AO adopted CUP method, which has been accepted by the assessee - it is mentioned that the assessee did not file form no. 3CEB either with the return of income or in the course of the determination of the ALP - ld. CIT(A) made adjustment of 7.40% on account of increase in the rate of copper in the months of January, February and March, 2005 - The contracts with unrelated parties were fixed-price contracts. The AO adopted ALP on the basis of rate charged from unrelated parties - It appears from the conduct of the parties that the contracts were valid till the end of the last quarter of financial year 2004-05, as sales to them at the fixed rate have been made in January and February, 2005 - the facts show that the fixed price-contracts with unrelated parties took into account the probable increase in prices in copper during the period in which they were entitled to buy the goods - it is held that the assessee is not entitled to get any deductions on account of increase in price quoted at LME Regarding deduction of expenditure incurred in opening the LC, granted by the ld. CIT(A) at 0.35% - e ALP shall be taken to be the arithmetical mean prices, or, at the option of the assessee, a price which may vary from arithmetical mean by an amount not exceeding 5% of such arithmetical mean - where there is only one price say in case of gold, copper, zinc etc., there is no possibility of different prices once purity is same - Decided in favor of the assessee
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