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2019 (3) TMI 738 - HC - Income TaxTP adjustment - Direction in remand proceeding - Customs Duty Adjustment, Air Freight Adjustment and Foreign Exchange Adjustment considered for determining the Arms Length Price (ALP) - remand for enquiry by TPO - HELD THAT:- though the issue relating to Customs Duty Adjustment, Air Freight Adjustment and Foreign Exchange Adjustment were directed to be reconsidered by the Transfer Pricing Officer for determining the Arms Length Price (ALP) in the case of the Assessee, the Tribunal has, in fact, fixed how such adjustments have to be made or not to be made. This hardly leaves any discretion to deal with these issues afresh with the Transfer Pricing Officer, since the Transfer Pricing Officer, being the lower Authority, would be bound by the observations and findings of the Tribunal. This, in our opinion, frustrates the very purpose of remand for enquiry by the Transfer Pricing Officer into these three issues by the Transfer Pricing Officer, as directed by the Tribunal itself. Therefore, we allow the present appeal of the Revenue and while upholding the remand order passed by the Tribunal, we observe that the Transfer Pricing Officer will pass such fresh order in pursuance of the remand directions, uninfluenced by the observations of the Tribunal, on the merits of the case.
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