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2016 (11) TMI 327 - AT - Income TaxTransfer pricing addition - inclusion of M/s Datamatics Ltd. with calibrated OP/TC margin of 1.76% from the list of comparables - Held that:- We find that the assessee simply challenged a few issues of transfer pricing adjustment before the ld. CIT(A) as is apparent from Form No. 35. Some of such issues were not decided by the authority for the reason of relief allowed on the inclusion of Datamatics Ltd. Under such circumstances, when we are sending the examination of Datamatics Ltd. to the TPO/AO and suppose if due to one reason or the other, this company is either not included or after inclusion of its OP/TC, the relief as allowed by the ld. CIT(A) is wiped out or reduced, then the scope of the proceedings be extended to encompass the consideration of other issues which were challenged by the assessee before the first appellate authority, but remained undisposed off. The ambit of fresh proceedings cannot be extended beyond that. We, ergo, refuse to accept the contention put forth on behalf of the assessee for an altogether de novo determination of the ALP of the international transaction. It is hereby directed in the ultimate analysis that the fresh examination in the case of eventuality as discussed above, be confined only to the issues agitated before the ld. CIT(A), which were not dealt with by him. With these observations, we set aside the impugned order and remit the matter to the file of AO for doing the needful as indicated above, after allowing a reasonable opportunity of being heard to the assessee.
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