Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 238 - AT - Income TaxTransfer pricing adjustment - adjustment to the international transactions of the assessee with its Associated Enterprises (AEs) - assessee is a subsidiary of TRUMPF Group Company TRUMPF International Beteiligungs – GmbH and TRUMPF Finance GmbH - non supply of segmental details - DRP observed that the assessee has not submitted valuation certificate regarding import of software for the machinery - Held that:- It is an undisputed fact that segmental reporting was not part of the audited annual accounts. It is an admitted fact that Accounting Standard – XVII on segmental report was not applicable. However, it is also an undisputed fact that segmental results were made available to the TPO during the course of assessment proceedings. The TPO has not pointed out any default or error in the segmental analysis provided by the assessee. In our considered opinion, once the segmental results were made available, it was incumbent upon the TPO to consider the same for determining the ALP. A similar view has been taken in the case of M/s Honeywell Electrical devices & Systems India Ltd. Vs. ACIT [2014 (5) TMI 728 - ITAT CHENNAI] and M/s 3i Infotech Limited vs. ITO [2013 (5) TMI 834 - ITAT MUMBAI]. Drawing support from the decision of the co-ordinate Bench (supra), we restore this issue to the file of the TPO/A.O. The TPO is directed to consider the segmental results provided by the assessee and decide the issue afresh after giving a reasonable and proper opportunity of being heard to the assessee. In respect of international transactions pertaining to capital goods, import of spares and consumables, import of tools, we find that the valuation certificates for import of capital goods, tools and spares covered 93% of the total aggregated value of such transactions and third party CUP (international CUP analysis) for import of capital goods, tools and spares covered 75% of the total aggregated value of such transactions. We find that the TPO has got no cogent material available on record to establish the contrary. We therefore do not find any merit in making any adjustment in respect of these transactions. We further find that the import of software of ₹ 1,15,590/- has been sold by the assessee at ₹ 1,23,656/- which is higher than the price at which it was procured, therefore, no adverse inference should be drawn in respect of this. - Decided in part in favour of assessee for statistical purpose.
|