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2017 (11) TMI 515 - AT - Income TaxTPA - comparable selection criteria - Held that:- Assessee is a private limited company, which is engaged in the business of import of assembly of component and re-export of assembled medical disposable balloon catheters as 100 % export oriented unit (EOU). It is providing a captive production to its parent company and its parent company has helped in setting up and expansion of manufacturing facilities by providing technology, training, and finance administrative and marketing support to the assessee. Assessee imports different sub assemble parts i.e. semi finished balloon catheters which includes the purging of holes in the silicon tubing and fixing with wall, rings and the balloon. The final products are being sold only to one customer i.e. the AE of the assessee. Thus comparables functionally dissimilar with that of assessee need to be deselected from final list of comparable, thus exclude the 2 comparables namely, Hindustan syringe Ltd were and Pregna international Ltd. Grant assessee that adjustment on account of the working capital if appropriate details are provided according to our direction following the decision of coordinate bench. Not to exclude duty drawback and the DEPB from operational income of the assessee as well as of the comparable because they are operational income of the assessee for the reason given by us. Not to exclude exchange fluctuation on account of forward contract in case of eastern medicate private limited as it is pertaining to the raw material purchases and on account of risk mitigation of the operation of the comparable. To not to allow the risk adjustment to the assessee in the computation of margin.
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