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2016 (8) TMI 861 - AT - Income TaxTransfer pricing adjustment - exclusion of ANG Industries Ltd. from final list of comparables while benchmarking the international transaction undertaken by the assessee - Held that:- The assessee was a manufacturer of auto components. However, ANG Industries Ltd. had undergone major restructuring, wherein the subsidiary ANG Auto Tech Pvt. Ltd. was amalgamated with ANG Industries Ltd. w.e.f. March, 2007. After amalgamation, ANG Industries Ltd. became well diversified company and was engaged in the manufacture of trailers in addition to auto components. The CIT(A) had referred to the page 17 of the Annual Report of the said concern, wherein the said fact has been reported by the company. Further, the reason for growth in business was also attributed to the growth in trailer business. The turnover of ANG Industries Ltd. was ₹ 143 crores as against the turnover of assessee at ₹ 54 crores declared by the assessee, which is not the sole criteria to reject the said concern. However, where the concern had entered into other line of business and in the absence of segmental profits in respect of two businesses carried on by the said concern, we hold that the said concern ANG Industries Ltd. is not functionally comparable to the assessee and hence, the same is to be excluded from the final set of comparables. Upholding the order of CIT(A) in this regard, we dismiss the grounds of appeal raised by the Revenue. - Decided in favour of assessee.
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