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2018 (6) TMI 1226 - AT - Income TaxTPA - comparable selection criteria - Held that:- Assessee is engaged in the business of import and distribution of the Marlboro brand of cigarettes, export of tobacco leaves to its associated enterprises and provision of market support services. The market support services segment of Indian branch office provides the services like representation services to associated enterprises, carrying out market research work and sharing market related information with AEs and logistic support to AEs for supply of goods to other countries, apart from rendering services in respect of the operations in Nepal and Bangladesh thus companies with difference in business structures and functionally not to be selected as comparable 5 companies, namely, Apitco Ltd., Cameo Corporate Services, Global Procurement Consultants Ltd, Killik Agencies and Marketing Ltd and TSR Darashaw Ltd. opposed by the assessee before the authorities below are not good comparables to the assessee and they are liable to be deleted. We therefore direct the Ld. TPO to delete all these companies can define a list of comparables for benchmarking the international transaction of Market Support Services rendered by the assessee to AEs., and to recompute the Arm’s Length Price of the international transaction of Market Support Services. Disallowance u/s 40 (i)(a) - assessee had incurred certain expenditure in foreign currency on various accounts - admission of additional evidence - Held that:-The very submission of the learned Counsel that the assessee had to file additional evidence to furnish the alleged Agreement, lends any amount of support to the observations of the Ld. AO that such an Agreement was not available during the assessment proceedings so that the Ld. AO could have returned a finding after appreciating the contentions of the assessee. Further the matter is pending before the Ld. AO for consideration of the very same issue in respect of the assessment year 2008-09, as was remanded by this Tribunal. In the circumstances, we deem it just and proper to remand this issue to the file of the Ld. AO for consideration
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