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2022 (2) TMI 811 - AT - Income TaxTP Adjustment - comparability - claim of turnover filter - HELD THAT:- AO has disregarded the fact that the assessee had set up a new plant and the new plant had commenced production during the relevant assessment year. The details of the same are placed. The Tribunal in the case of IKA India (P.) Limited [2018 (10) TMI 923 - ITAT BANGALORE] had held that capacity utilization adjustment shall be granted. It was further held by the Tribunal that in absence of details, adjustment can be made on the tested party also. We are of the view that the AO/TPO has to conduct fresh TP analysis. Therefore, grounds/issues raised in this appeal as regards the TP issues are restored to the files of the AO/TPO. AO/TPO is directed to restrict the TP adjustment to the international transaction. Further, the AO/TPO by following the dictum laid down by the Tribunal in the case of IKA India (P.) Limited v. ACIT (supra), shall consider the claim of the assessee as regards the capacity utilization, RPT filter, etc.
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