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2013 (12) TMI 780 - ITAT DELHIDetermination of arm's length price (ALP) - rate of commission charged by the assessee from its AEs - Held that:- As the law provides for considering the price charged or paid in a comparable uncontrolled transaction, there can be no scope for considering a quotation price in isolation which is not preceded with or succeeded by any actual transaction. - the bare quotation price cannot be accepted under the CUP method for the purposes of benchmarking. - Decided against the assessee. It is the assessee who has to substantiate that the price charged is at ALP and not vice versa. The assessee has to face the music if it fails to prove so. Such a burden can be discharged by positively demonstrating and proving with the help of some comparable cases that the price charged or paid in an international transaction is at ALP. If the assessee does not bring on record any comparable case to indicate that the price charged in another comparable uncontrolled transaction should be differed, then the price so charged or paid in the given comparable uncontrolled transaction has to be accepted as ALP. Assessee charged commission from SIMCO as well as some third party at $ 0.50 per DMT. Such rate, unless shown with the help of some other comparable case to be not applicable in respect of the other two international transactions because of different volume, cannot be ignored. - Decided against the assessee.
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