Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 637 - AT - Income TaxAddition towards adjustment of Arm’s Length Price - as per AR arithmetical mean in respect of seven shipments should be arrived at determining the ALP and if it is variation is below 5%, there could not be any TP adjustment in view of sec.92(C) - Held that:- The seven sets of international transactions undertaken by the assessee cannot be considered as ‘closely linked’. We, therefore, refuse to accept the contention of the assessee’s counsel. Being so, we find that the judgment relied on by the ld. DR in the case of Development Consultants (P) Ltd. v. DCIT (2008 (4) TMI 340 - ITAT CALCUTTA-A) wherein it was held that the ALP should be determined on a transaction-by-transaction basis and not on an aggregate basis as argued by the assessee’s counsel. The same view was taken by the Tribunal in the case of ACIT v. UE Trade Corporation (India) (P.) Ltd.(2010 (12) TMI 224 - ITAT, NEWDELHI ) wherein it was held that the Assessing Officer was within his jurisdiction for the purpose of determining of ALP by examining each transaction separately. Further, in this case, price variation is more than 5%, Assessing Officer is justified in making adjustment of ALP determined by the tax payer and the proviso to sec.92C provides that where more than one price may be determined by the most appropriate method, the ALP shall be taken to be the arithmetical mean of such prices. In the instant case only one price has been determined under most appropriate method, the question of application of the proviso does not arise. Accordingly, the assessee is not entitled for concession as prescribed in the proviso to sec.92C(2) of the Act. - Decided in favour of revenue
|