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2023 (2) TMI 1000 - ITAT PUNETP Adjustment - comparing the Appellant’s margin at entity level with that of the comparable companies - whether TPO erred in comparing the Appellant’s margin at entity level with that of the comparable companies’ margin - HELD THAT:- It emerges during the course of hearing that it’s sole endeavour is to get impugned arm’s length price re-computed at transaction than entity level as per the provisions in Chapter X of the Act. Assessee submitted during the course of hearing that the issue as to whether the impugned arm’s length price ought to be computed at transaction level or at entity level is not more res-integra in light of hon’ble jurisdictional high court’s decision in CIT vs. Alstom Projects India Ltd. [2016 (12) TMI 1408 - BOMBAY HIGH COURT] rejecting the Revenue’s arguments to this effect. We direct the TPO to ensure computation of assessee’s arm’s length price in issue involving sales in manufacturing segment at transactions level. Necessary computation at the TPO’s level shall follow as per law. Certain items as non-operating in nature while computing the margin of the Appellant - DRP/Ld. TPO erred in considering foreign exchange earning/loss and provision for doubtful, debt/provisions written back as non-operating in nature - HELD THAT:- Assessee sought to invite our attention to the assessee’s segmental details in its audited books of accounts that the learned lower authorities have erred in law and on facts in computing the impugned arms’ length price in foregoing terms. Be that as it may, we are of the view that the TPO herein also needs to recalculate the assessee’s arm’s length price after taking into consideration the assessee’s audited book results in its transfer pricing study report so as ensure that non-operating items are not included in its consequential computation. Ordered accordingly. Exclude income from provision of management services from AE sales in issue for computing arm’s length price - HELD THAT:- We primafacie find merit in the assessee’s instant substantive ground subject to final computation since its sales involving Associated Enterprise “AE” and provision of management support services prime-facie form different segments. We have not expressed our opinion on merits since the issue is being restored back to the learned TPO for his final computation as per law.
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