Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1627 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- We observe that the issue is squarely covered in favour of the assessee by assessee’s own case for assessment year 2009-10 [2019 (4) TMI 1286 - ITAT PUNE] wherein it has been categorically held by the Co-ordinate Pune Bench that BEML Limited being a Government Company even without going into the merits of the functional test of BEML Limited, it cannot be considered as a comparable to that with the assessee since Government Companies operate entirely in different controlled environment, customers are different, raw material suppliers are different, profit margins are different and would not operate in a free competitive environment. Capacity adjustment by recommending a method without justifying the reliability of the method - HELD THAT:- As relying on M/S PETRO ARALDITE P. LTD. [2013 (8) TMI 403 - ITAT MUMBAI] we find this issue should be remanded to the file of the Assessing Officer to follow the precedent in existence on this issue and make the adjustment in any after granting a reasonable opportunity of being heard to the assessee. Non-availability of authentic bifurcation of the transactions between the AE and Non-AE - inappropriate computation of transfer pricing adjustment on the total turnover of the assessee from manufacturing operations instead of adjustments, if any only on the value of international transactions pertaining to manufacturing operations - HELD THAT:- Transfer pricing adjustments should be restricted to the value of the international transactions. Since this is a case of import transactions, we agree with the assessee and direct that the transfer pricing adjustments should be restricted to the value of the international transactions. Hence, this objection of the assessee is accepted.
|