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2023 (4) TMI 725 - ITAT CHENNAITP Adjustment - In second round, the assessee sought various economic adjustments while computing its margins - AR submitted that TP adjustment could not exceed global profit of the group as a whole and therefore, TP adjustments may be restricted by considering 94% or in worst scenario @100% of sales consideration received from ultimate customer i.e., Nike - HELD THAT:- TPO has proposed overall adjustment of Rs.60.50 Crores for all the three years which far exceeds the 100% of revenue ultimately realized by the assessee group from Nike. The same could not be held to be justified from any angle particularly considering the fact that in APA for subsequent years, it has been agreed that ALP, in no case, would exceed 100% of sale consideration receivable from ultimate customer. Therefore, accepting the plea of Ld. AR, we direct Ld. TPO to restrict the TP adjustment, for all the three years, by considering 100% of sale consideration receivable from ultimate customer i.e., Nike. The same has been tabulated by Ld. AR in the above table and works out to be Rs.31.49 Crores for all the three years. TPO is directed to verify the figures and restrict the adjustment to that extent.
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