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2013 (6) TMI 184 - AT - Income TaxTransfer pricing – Adjustment of Rs.4,30,47,427 to the income of the assessee on account of international transaction of import of parts and capital goods by disregarding the transfer pricing methodology adopted by the appellant for benchmarking its international transactions – Held that:- After careful consideration and perusal of the entire record placed before us, at the outset, we observe that the assessee has placed his reliance on the decision of ITAT Mumbai Bench in the case of UCB India (P) Ltd. vs ACIT [2009 (2) TMI 237 - ITAT BOMBAY-L] wherein it is clarified that under the transfer pricing regulations, only margin of transaction is the basis of comparison. It has been held by the Tribunal that the benchmarking analysis is to be undertaken on transaction to transaction basis by comparing operating profit margin earned by the appellant from international transactions and from comparable uncontrolled transactions. Factual matrix emerged from the fluctuation of foreign exchange rates that while prices of purchases and import made by the appellant have increased, the sale price of exported goods remained on the lower side which is an important element to materially affect the price in the open market. In this situation, we are inclined to hold that the authorities below should have considered the said difference due to foreign exchange rate fluctuation in favour of Thai Bhat and against the INR and the said difference has to be removed and the margin thereon has to be adjusted for arriving at the credible comparable through the requisite adjustments. AO restricted the depreciation on computer peripherals at 15% as against 60% claimed by the appellant – Held that:- The issue of depreciation of computer peripherals has been settled by Hon’ble Jurisdictional High Court of Delhi in the case of CIT vs BSES Rajdhani Bench Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] and accordingly allowed in favour of the assessee. Levying of interest u/s 234B and 234C of the Act – Short payment of advance tax - Held that:- In the judgment of Jurisdictional High Court of Delhi in the case of DIT vs Jacabs Civil Incorporated/Mitsubishi Corpn. [2010 (8) TMI 37 - DELHI HIGH COURT], the order of ITAT Delhi Bench in favour of the assessee and dismissing the revenue’s appeal, it has been held that the scheme of the Act in respect of non-resident is clear. Section 195 of the Act puts an obligation on the payer i.e. any person responsible for paying to a non-resident, to deduct income tax at source at the rates in force from such payments excluding those incomes which are chargeable under the head ‘Salaries’. Following the same decision the matter held in favour of assessee.
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