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2015 (7) TMI 600 - ITAT DELHITransfer pricing adjustment - determination of the assessee’s profit margin from the international transaction of `Provision of marketing support services’ - Held that:- We find from the asessee’s Profit & Loss Account that the amount of Revenue received from AEs stands at ₹ 28,89,60,870/-. As against that, the assessee calculated its margin at 17.90% by considering operating revenue at ₹ 28,99,33,453/-. It is self evident that the gross revenue received by the assessee from its AE from this international transaction is actually ₹ 28,89,60.870/-, which the assessee erroneously took as ₹ 28,99,33,453/-, thereby increasing the revenue and the resultant operating profit margin from the international transaction to this extent. The ld. AR was fair enough to concede that the revenue should be correctly taken at ₹ 28,89,60,870/- instead of the inflated figure given in its TP study report. It is observed that the TPO also followed the suit by erroneously taking such an inflated figure of the revenue. We, ergo, set aside the impugned order to this extent and direct the TPO to adopt the correct figure of operating revenue at ₹ 28,89,60,870/-. Selection of comparable - inclusion of three comparables in the final set of comparables viz., Engineers India Ltd., RITES Ltd., and WAPCOS Ltd - Held that:- It has been brought to our notice that the matter of the preceding year is still pending before the TPO and no final decision has so far been taken on the comparability or otherwise of these three companies. Under such circumstances and respectfully following the precedent, we also set aside the impugned order and remit the matter to the file of TPO/AO for deciding the comparability or otherwise of the above referred three companies in line with his decision pursuant to the tribunal order for the AY 2005-06. Apart from considering the question of inclusion or exclusion of these three companies in the final set of comparables, the TPO will also go into the issue of working capital adjustment as has been directed by the Tribunal in its aforequoted order. Transfer pricing adjustment is against not allowing any risk adjustment - Held that:- Adverting to the facts of the instant case, we find that there is no material worth the name justifying the claim of risk adjustment by comparatively showing particular risks undertaken or not undertaken by the assessee vis à-vis the comparables. A generalized submission about the assessee assuming low/no risk vis-à-vis its comparables, cannot be countenanced. The assessee has to expressly exhibit that the specific risks undertaken by the comparables were absent in its case and vice versa. In the absence of any such working available either before the authorities below or us, we are disinclined to direct the granting of any risk adjustment. This contention of the ld. AR, therefore, fails - Decided partly in favour of assessee for statistical purposes.
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