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2018 (8) TMI 1624 - AT - Income TaxDetermination of Arm’s Length Price - TPA - comparable selection - inclusion of Aegis in the final set of comparables - Held that:- A perusal of the functional profile of the assessee company and on a comparison of the same with the profile of Aegis Logistics Ltd., it is clear that they are different. The assesee is engaged mainly in vessel handling, stevedoring & cargo handling, clearing & forwarding and other port related activities whereas Aegis Logistics Ltd. is primarily engaged in providing liquid logistics outside the port area, up to the destination through pipelines. Whether the company ‘Malabar’ should be excluded from the final list of comparables - Held that:- ‘Malabar’ cannot be taken as a comparable in the final list of comparables for the reasons that the turnover in question is not comparable. The margins of this company is far in excess of the margins of its holding company M/s. Aspinwall Ltd. which is also taken as a comparable by both the assessee as well as the revenue. Hence we direct that this comparable should be excluded from the final list of comparables. The TPO could not have included this company as a comparable, without investigating the reasons for ‘Malabar’ declaring abnormal profits at 42.33%, as compared to all other comparables including its holding company. - decided in favour of assessee.
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