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2006 (9) TMI 498 - HC - Income TaxDetermination of Arms Length Price Held that:- The assessee shared profit in the ratio of 50:50 both on the payments made by it and the receipts of freight from its AEs - Revenue could not controvert finding that the functions performed, assets employed and risk undertaken in both the AEs is same - The assessee paid certain sum to its AEs abroad for doing the work similar to which it did for which it received freight revenue from its AEs thus, in both the situations the total receipts are taken on one hand, from which all the expenses incurred in connection with the transportation of cargo in both the countries are excluded - The remaining amount is distributed between the entity of origin country and the entity of destination country in equal share - the assessee has earned/paid revenue from/to its AEs in the same proportion, thus, the transactions have been recorded at arm's length price and there was no justification for making such addition Relying upon ACIT vs. M/s Agility Logistics Pvt. Ltd. [2013 (9) TMI 645 - ITAT MUMBAI] - there is no reason to interfere in the order Decided against Revenue.
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