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2016 (4) TMI 356 - AT - Income TaxTransfer pricing adjustment - exclusion of Mold-Tek Technologies Ltd as comparable by the CIT(A) - Held that:- The company grew with a compounded annual growth rate (CAGR) of 147% for 3 years which is evident from the chart given in the impugned order of the Ld.CIT(A) and on the basis of the said chart, CIT(A) has rightly rejected Mold-Tek as comparable company due to the consistently abnormal profits earned by the company. The CIT(A) by deciding this issue has studied annual report of the company and found that there were several irregularities in the financial statements. When we look into all these aspect, we find that the CIT(A) was correct in excluding Mold-Tek Technologies Ltd. as comparable and hence the Revenue is not proper in harping that Mold-Tek has to be taken into account as a comparable in TP study.
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