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2015 (11) TMI 487 - AT - Income TaxTransfer pricing adjustment - Held that:- There are four types of gum base. In the case of orion and lotto the cost of production was adopted as the market price by the Assessing Officer. This is not tenable in view of decisions relied upon by the assessee in the case of JCIT vs.Cipla Ltd. (2005 (2) TMI 748 - ITAT MUMBAI) and the judgement of the Hon’ble Gujarat High Court in the case of Anil Starch Products Ltd. vs. CIT (1965 (9) TMI 55 - GUJARAT HIGH COURT). The A.O. on the one hand observed that the gum base sold ranges from ₹ 50 to ₹ 96 and that the information obtained from M/s Perfetti Van Melle was ₹ 168/- for the year 2003-04 and ₹ 124/- per kg for the A.Y. 2004-05. The A.O. has applied price of ₹ 95 per kg in respect of non acidic gum base. There is no logic given by him by adopting these rates. Thus, rates adopted by the A.O. for all the four types of gum base, in our opinion, has rightly been held as incorrect by the First Appellate Authority. As there is no other material available on record, to challenge the transfer price declared by the assessee, which is on the basis of invoices from CAFOSA, we have no other alternative but to uphold this claim. In the result we dismiss this appeal by the Revenue. - Decided in favour of assessee.
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