Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1895 - AT - Income TaxTP Adjustment - upward adjustment made u/s 92CA in respect of transaction of sales of finish goods - international transaction - HELD THAT:- MICRO INK LIMITED VERSUS ADDITIONAL COMMISSIONER OF INCOME TAX VAPI RANGE, VAPI [2015 (12) TMI 143 - ITAT AHMEDABAD] the comparison has to be based on real transactions of similar nature, if at all such transactions have taken place. When no such transactions have taken place, as is the case before us, there is obviously no occasion of any comparison. The stand taken by the learned Departmental Representative, therefore, is not only quite detached from commercial reality but also wholly untenable in law. In any case, what can be examined on the touchstone of arm's length principles is the commercial transaction itself, as a result of which the debit balance has come into existence, and the terms and conditions, including terms of payment, on which the said commercial transaction has been entered into. Aztec decision [2007 (7) TMI 50 - ITAT BANGALORE] is of no assistance to the case of the revenue. The international transaction is exports of goods which has been benchmarked on TNMM basis and which is duly accepted by the TPO. In assessee's own case for the earlier years, we uphold the grievance of the assessee and direct the Assessing Officer to delete the impugned ALP adjustment - we uphold the plea of the assessee and delete the impugned ALP adjustment
|