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2012 (12) TMI 237 - AT - Income TaxPenalty u/s 271(1)(c) - Transfer pricing Arm length price - Whether multiple year data can be used or the current year data has to be used to calculate arm length price Held that:- This is a debatable issue at the point of time when the assessee filed its return of income, the assessee adopting multiple year data for arriving at arm's length price is a bonafide exercise. Thus penalty levied on that account cannot be sustained. The law on this issue was evolving. Transfer pricing Deletion of comparable - TPO has accepted the same in the earlier AYs Held that:- Selection of comparables is a subjective exercise. The assessee has seriously contested the conclusions drawn by the TPO on selection of comparables for bench marking of international transactions. It is another matter that the assessee chose not to carry the issue in appeal, the reasons of which have been explained. the assessee acted in the bonafide manner in conducting its transfer pricing study and arriving at an arm's length price. The explanation is bonafide and under those circumstances the levy of penalty under Section 271(1)(c)is not warranted. In favour of assessee
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