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2014 (3) TMI 886 - AT - Income TaxDetermination of the correct base in the PLI – Held that:- The decision in Li & Fung (India) Pvt. Ltd. Vs CIT [2014 (1) TMI 501 - DELHI HIGH COURT] followed - the FOB value of goods between the third party enterprises, sourced through the assessee, was not in accordance with the law - there remains no doubt whatsoever that the base of 'total cost' as adopted by the TPO and approved by the DRP in considering the FOB value of goods between the third party enterprises cannot be accepted – thus, the order is set aside and the 'total cost' being the denominator in the PLI of OP/TC, has to be taken as the costs incurred by the assessee and not the FOB value of goods between third party enterprises sourced through the assessee - the tested party should be the assessee and not it's A.E. Transfer pricing adjustment on account of ALP – International transaction of provision of sourcing support services – Services provided to AE - Held that:- The 'total cost' in the denominator will stand changed to the 'total cost' incurred by the assessee instead of the FOB value of goods between third party enterprises - necessary details for the determination of ALP with the correct base of the assessee as well as comparables are not readily available on record – thus, the matter is remitted back to the AO for fresh adjudication. Depreciation of computer peripherals – 15% OR 60% - Held that:- The decision in DCIT Vs Datacraft India Ltd. [2010 (7) TMI 642 - ITAT, MUMBAI] followed - whether a particular machine can be classified as a computer or not, the predominant function, usage and common parlance understanding, would have to be taken into account - the authorities below were not justified in reducing the rate of depreciation on computer peripherals – Decided partly in favour of Assessee.
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