Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 261 - AT - Income TaxUse of Foreign Comparables - TPA - Held that:- Foreign comparables (i.e. UK comparables) can be taken into account for carrying out FAR analysis and benchmarking of the assessee’s international transactions with its Associated Enterprise’s for determining those Arm's Length Price. It is also accordingly held that the selection of Indian comparables by the Transfer Pricing Officer is not accepted. In view of the fact that the Transfer Pricing Officer has not examined the comparability of the UK comparables chosen by the assessee, he is directed to do so and if the assessee’s comparables do not stand the test of comparability, the Transfer Pricing Officer may carry out his own search for fresh comparables and select the same, only after affording the assessee adequate opportunity of being heard and to file details/submissions in this regard, which shall be duly considered by the Transfer Pricing Officer before taking a final decision in the matter. With these observations, we restore the matter of the transfer pricing adjustment of provision of services to the file of the Assessing Officer/Transfer Pricing Officer. It is accordingly ordered. - Decided partly in favour of assessee for statistical purposes.
|