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2012 (11) TMI 216 - AT - Income TaxAddition made to the arm's length price - alleged that value of assessee's international transactions with Associated Enterprises (AE) was in excess of ₹ 5 Crores - Assessee's submission was that Comparable Uncontrolled Price (CUP) method could not be applied since materials purchased from AE and from unrelated entities were technically different – Held that:- Assessee has to be given an opportunity to explain what adjustments it would like to carry out to the prices determined under CUP method so as to adjust such differences and make it fit for comparison as stipulated in sub-rule (2) of rule 10B - matter requires re-visit by the TPO for correctly assessing the prices that could be adopted under CUP method for comparison after carrying out the adjustment required - TNM method could not have been adopted in the circumstances of the case, we remit the matter back to TPO and Assessing Officer for determining the arm's length price under CUP method after making required adjustment stipulated in law. Assessee has to substantiate with sufficient evidence the adjustments that are reasonably required to be made for rendering the prices comparable - ground taken by the assessee relating to determination of arm's length price, is allowed for statistical purposes.
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