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2018 (6) TMI 409 - AT - Income TaxTPA - selection of inappropriate set of comparables and not rejecting inappropriate company considered as comparable - Held that:- The assessee is engaged in manufacturing of material handling equipments thus companies functionally dissimilar with that of assessee need to be deselected from final list. Adjustment to the Profit Level Indicator of comparable for higher cost towards import of materials - Held that:- In view of the issue being set aside by the Tribunal in assessee’s own case in earlier years to determine the adjustment to the PLI on account of import duty, we find no merit in the ground of appeal No.2 raised by the Revenue and the same is dismissed Directions of DRP in not restricting TP adjustment to the international transactions with associated enterprises only pertaining to manufacturing and service activity - Held that:- The issue stands covered by the order of Tribunal in Demag Cranes & Components (India) Pvt. Ltd. Vs. DCIT [2013 (12) TMI 243 - ITAT PUNE] - Accordingly, we direct the Assessing Officer / TPO to restrict the adjustment, if any, on account of arm's length price of international transactions only to the extent of international transactions with associated enterprises.
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