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2013 (5) TMI 417 - DELHI HIGH COURTRe opening of assessment - Transfer Pricing Officer had determined the Arm’s Length Price on the basis of which the addition to the extent of Rs 1,20,20,160/- had been made by the AO - Held that:- From a look at Form No.3CEB which was filed alongwith the return by the assessee would indicate that the transactional net margin method had been followed as the most appropriate method. Form No.3CEB is nothing but the report from the accountant to be furnished under Section 92E relating to international transactions filed alongwith the return and, therefore, there was compliance on the part of the assessee with the provisions of Section 92E. There was no material whatsoever before the Assessing Officer when the purported reasons were recorded to indicate that the Arm’s Length Price determined by the assessee was not correct. In fact, there is not even an allegation that the Arm’s Length Price determined by the assessee was not correct. Therefore assessee's conclusion are acceptable that the purported reason of determination of the Arm’s Length Price, as given in the reasons for reopening the assessment, was not a reason at all. AO could proceed to determine the Arm’s Length Price only if there was a fault found with the determination of the Arm’s Length Price by the assessee. If the Assessing Officer were to form such an opinion, then he could either determine the Arm’s Length Price himself or he could refer the matter for computation of the Arm’s Length Price to the Transfer Pricing Officer under Section 92CA. Thus in agreement with the contention of assessee that, following the decisions in Jet Airways (2010 (4) TMI 431 - HIGH COURT OF BOMBAY) and Ranbaxy Laboratories Limited (2011 (6) TMI 4 - DELHI HIGH COURT ) there could not have been an addition on account of Arm’s Length Price as the only two purported reasons regarding claim of loss on account of foreign exchange fluctuations and the claim of expenses on account of “data usage charges” had not resulted in any addition. In favour of assessee.
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