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2015 (10) TMI 385 - AT - Income TaxTransfer pricing adjustment - re-allocation of cost between its packaging unit and ITES unit - Rectification petition on non-consideration of the revised segmental results - Held that:- The directions of the DRP with regard to the claim of assessee for re-allocation of cost between its packaging unit and ITES unit, in our opinion, unambiguous. The DRP has directed the AO to verify actual segmented cost base and compute the ALP. Pursuant to such directions dated 29-11-2013, assessee had on 20-12-2013, filed a letter dated 19-12-2013, before the TPO wherein it had given the heads of expenditure which were subject to re-allocation. The change in the net result between the original segmental working and the revised segmental working of margin is clear. In our opinion, the AO should not have taken refuge under an order passed on an earlier rectification petition by the assessee in which it had pointed out the non-consideration of the revised segmental results filed by it. Even that order dated 30-08-2013, in our opinion, was very cryptic. The directions of the DRP has not been properly considered by the lower authorities If the assessee's claim for revised segmental results are found to be acceptable, there is every possibility that pricing of its international transactions would come within +/- 5% of the PLI worked out by the TPO himself. Then the issue regarding exclusion and/or inclusion of comparables may not arise at all. We therefore, set aside the orders of the authorities below and remit the issue back to the file of the AO/TPO for consideration afresh in accordance with law. Right of the assessee to challenge all other aspects of the assessment and conditions are kept open. - Decided in favour of assessee for statistical purposes.
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