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2018 (10) TMI 1433 - AT - Income TaxTransfer pricing adjustment - Selection of comparable - applying turnover of ₹ 1 crore to 300 crores while selecting the concerns as comparables - Held that:- The issue of selection of suitable turnover to be applied has been adjudicated in series of cases and following the same parity of reasoning, we uphold the directions of DRP in applying turnover of ₹ 1 crore to 300 crores while selecting the concerns as comparables. Accordingly, we find no merit in the ground of appeal No.1 raised by the Revenue in this regard. Hence, five concerns are to be excluded from final set of comparables. Transfer pricing provisions to the segment of provision of software development services by the assessee to its associated enterprises in selection of three new concerns by the assessee during TP proceedings - Held that:- The concerns which were found to be functionally comparable though selected during TP proceedings, then the same need to be considered in case they fulfill all the other filters, by the TPO. Accordingly, we uphold the directions of DRP in this regard and dismiss the ground of appeal No.2 raised by Revenue. Adjustment made to provision of intra-group cost - Held that:- The case of assessee before us was that theses costs had been recovered on cost plus markup from associated enterprises and hence, there is no merit in adopting the same at Nil. The Tribunal in assessment year 2009-10 had also remitted the issue back to the file of TPO. Accordingly, we remit this issue to the file of TPO/Assessing Officer to adjudicate the issue after affording reasonable opportunity of hearing to the assessee in line with directions of Tribunal in earlier years. The TPO/Assessing Officer shall also consider the plea of assessee in recovering intra-group cost at cost plus markup and decide the issue in accordance with law.
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