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2012 (8) TMI 83 - AT - Income TaxTransfer pricing - Computation of arm's length price – Held that:- The ALP has to be determined by the TPO in accordance with law and the Act provides that the TPO shall take into consideration the contemporaneous data. The assessee was only required to maintain the information and documents as may be necessary relating to the international transactions so that it can be made available to the TPO or the AO or any other authority in any proceedings under the Act. By providing a specified date in the Act, the obligation is cast upon the assessee to keep and maintain the documents for that period. But, it does not restrict the TPO from making enquiries thereafter for determining the correct ALP. TPO need not inform the assessee about the process used by him for issuing the notices u/s 133(6) of the Act nor is he under any obligation to furnish the entire information to the assessee - when TPO is making search for a relevant comparable, he can issue notices to parties whom he considers as relevant to gather requisite information and on being satisfied with regard to relevancy of material which can be used against assessee, assessee has to be given an opportunity of presenting its objections, if any. TPO Directed to recompute with following directions:- i) the operating revenue and the operating cost of the transactions relating to associated enterprises only shall be considered; (ii) the comparables having the turnover of more than Rs. 1 crore, but, less than Rs. 200 crores only shall be taken into consideration; (iii) all the information relating to comparables which were sought to be used against the appellant shall be furnished to the appellant; (iv) to consider the objections of the appellant that relate to additional comparables sought to be adopted by the TPO and to pass a detailed order; and (v) to give the standard deduction of 5% under the proviso to s.92C(2) of the Act. Free trade zone – Held that:- while computing deduction under section 10A communication expenses should be reduced not only from export turnover but also from total turnover
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