Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 591 - AT - Income TaxAdjustment of Arm's length price - Held that:- The basis of the adjustment made by the TPO is that while reporting the transactions of the related party, the assessee has shown the value of the purchases more than the sales disclosed by CTTL India by Rs.9,72,874/-. The DRP has not at all discussed anything on the submission made by the assessee nor has taken any pains to verify the correctness of the assessee's claim. The assessee has filed the Paper book in which the revised copy of the audit report is also filed - the difference in the figure cannot be treated only on the surmises and presumption basis for making the adjustment u/s.92CA(3) of the Act. Moreover, it is purely a purchase transaction and assessee has no PE in India. Otherwise also there is no tax implication even though there is a difference - Decided in favour of Assessee. Rejection of Comparables - Onus of reasons to disapproval - Held that:- Data base adopted by the assessee for selecting the comparables can be tested on FAR and there is likely to be some difference. Merely because some loss making companies are there those cannot be straightly rejected as comparables unless the abnormal loss is projected. As the same way, super profit comparables also should not be included. Transfer Pricing adjustment is not a law in strict sense though base on certain legal principles but it is arithmetic and while making the plus minus, the balance is required to be maintained - in respect of the selection of the comparables, the Tribunal has taken the consistent stand that as the super profit companies should not be included, the same way, super loss making companies should also be excluded. Though we agree with the TPO that some of the comparables for the purpose of PLI adopted by the assessee are showing the loss, but the burden is on the TPO to prove where those companies are consistently loss making companies. Moreover, except unsupported reasoning, no data has been brought on record by the TPO for excluding the comparables selected by the assessee in the Transfer Pricing study report - Decided in favour of assessee
|