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2012 (8) TMI 257 - AT - Income TaxTransfer Pricing Adjustment - AO/Transfer Pricing Officer made addition to the total income of the Appellant on account of adjustment in the arm's length price of the software development and related services and customer support services transactions entered by the Appellant with its associated enterprise - disregarding the economic analysis undertaken by the Appellant and conducting a fresh economic analysis for the determination of the arm's length price in connection with the impugned international transactions and holding that the Appellant's international transactions are not at arm's length – Held that:- TPO erred in rejecting certain comparables considered by the Appellant in the comparability analysis by applying different quantitative and qualitative filters - most of the issues raised by the assessee have since been dealt with in the assessee's own case in the immediately preceding assessment year wherein the earlier Bench had remitted back the issues to the TPO for fresh consideration - it is a diversified company and, therefore, cannot be considered as comparable functionally with that of the assessee. There has been no attempt made to identify and eliminate and make adjustment of the profit margins so that the difference in functional comparability can be eliminated – matter remanded to TPO - assessee is partly allowed
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