2018 (9) TMI 1810 - AT - Income Tax

TP adjustment - International transaction with the AE - addition consisting of AMP transaction by the Transfer Pricing Officer - 'Bright Line Test' (BLT) mandation - HELD THAT:- Revenue’s appeal, the issue raised pertains to the deletion of international transaction addition consisting of AMP transaction by the Transfer Pricing Officer following the decision by ITAT in assessee's own case and also decision in the case of Sony Ericson Mobile Communications (India) Pvt. Ltd. (now known as Sony India Ltd.) v. CIT [2015 (3) TMI 580 - DELHI HIGH COURT], Maruti Suzuki India Ltd. vs. ACIT [2015 (12) TMI 634 - DELHI HIGH COURT] and Whirlpool of India Ltd [2015 (12) TMI 1188 - DELHI HIGH COURT]. Since the DRP's direction is supported by the Hon’ble High Court’s decision, we do not find any infirmity in the same. Hence, the Revenue’s appeal is dismissed.

No proper opportunity granted to contest the alternative addition suggested by the transfer pricing officer and sustained by the DRP - HELD THAT:- We admit the submission of the ld. Counsel of the assessee that proper opportunity was not given to the assessee to make the submissions on the alternatives. However, we also do not agree with the ld. Counsel of the assessee that since on one of the alternative, the DRP's direction is silent, it can be understood that this issue has been considered by the DRP. Hence, we remit these issues on the alternative suggested by the TPO to the DRP. The DRP shall consider the same after giving the assessee an opportunity of being heard. The ld. Counsel of the assessee has fairly agreed to the above proposition.