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2019 (3) TMI 1919 - AT - Income TaxTP Adjustment - international transactions undertaken with the associated enterprise - rejection of segmentation - internal comparison of profitability from the international transactions with unrelated - HELD THAT:- As following the decisions of Birla Soft . [2015 (4) TMI 1239 - DELHI HIGH COURT], we set aside the order of the AO /TPO and remit this issue back to the file of the AO / TPO for determining the arm’s length price in respect of the international transactions undertaken with the associated enterprise be determined by making internal comparison of profitability from the international transactions with unrelated parties after allocating respective revenues and expenses to both the segments. The assessee shall place all relevant materials before the AO/TPO and comply to the requirements of AO/TPO in accordance with law. The AO/TPO shall after affording effective opportunity to the assessee shall decide this issue in accordance with law. ALP adjustment on the entire turnover (including revenue from third party customers) of the assessee - HELD THAT:- As following the order of this Tribunal in the case of M/s. Yongsan Automative India Pvt. Ltd [2017 (12) TMI 855 - ITAT CHENNAI] we hold that the transfer pricing adjustment has to be made only in respect of the transaction of the assessee being a tested party, with associated enterprise outside the country after comparing the transaction made by similarly placed company in uncontrolled transaction with non-Associated Enterprise. Therefore, we are unable to uphold the order of the Dispute Resolution Panel. Accordingly the order of the DRP is set aside and the entire issue is remitted back to the file of the AO/TPO. Assessee’s appeal is treated as partly allowed for statistical purposes.
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