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2013 (11) TMI 355 - AT - Income TaxTransfer Pricing Adjustment - Reference to Transfer Pricing Officer - Power of AO - Held that:- for Assessment Year 2006-07, the aggregate of international transactions was below Rs.15 Crores; - In this view of the matter, the Assessing Officer was not mandatorily required to make a reference to the TPO under section 92CA of the Act. - there is no infirmity in the action of the Assessing Officer in determining the ALP of the international transactions and making the Transfer Pricing adjustment of Rs.5,77,02,222; as it is in conformity with the jurisdiction conferred on him by the provisions of section 92C of the Act. - Decided against the assessee. Payment of cross charges of ex-pat costs and contractor charges - claimed as reimbursement to the parent company - Whether or not the expenses incurred by the parent company, Nike Inc., USA can be attributed solely and totally to the business of distribution undertaken by the assessee - Held that:- (i) the nature of these expenses are such that they cannot be attributed to have been solely and exclusively for the distribution business of the assessee; - - (ii) the claim of the assessee that it had derived tangible benefit from the expenditure has not been substantiated with evidence. - (iii) there is no evidence or likelihood of any independent entity dealing in similar circumstances bearing such expenditure. - T.P. Adjustments made by the lower authorities sustained. - Decided against the assessee.
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