9911796707
TMI Blog2012 (10) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... as 13 grounds of appeal to challenge the order of TPO/AO/DRP. However, the effective grounds raised are as under: "4. The TPO/AO/DRP have erred in law and in fact by considering sales/commission agents as comparable to the appellant, which are not comparable in view of the functional profile of the appellant. 5. The learned TPO/AO/DRP have erred in law and in fact by not considering the business support companies selected by the appellant as comparable. 6. The TPO/AO/DRP have erred in law and in fact by not accepting companies engaged in procurement activities proposed by the appellant as comparable. 7. The learned DRP has erred in law and in fact by accepting companies selected by the TPO even though they are not comparable to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies, assessee selected following companies as its comparables: - Electronica Machine Tools Ltd. - ICC International Agencies Ltd. ("ICC International"). - NTPC Electric Supply Co. Ltd. - Priya International Ltd. ("Priya") - Ratan Glitters Industries Ltd. 3.2 On the basis of these comparables and TNMM method, assessee determined arm's length price ("ALP"). 3.3 TPO erroneously held the assessee as a risk bearing agent and rejected the comparables except ICC International and Priya. It was held that these companies were functionally different from assessee and the additional comparables proposed by assessee were also rejected. Thereafter, TPO applying other comparables to average 25.54% OPO/TC mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding working capital adjustment. According to assessee since it was busy with its year end at the time of issue of show cause it had asked TPO for time to carry out detailed analysis of comparables with working capital adjustment. The assessee has now filed details before DRP. DRP has considered the direction of ITAT on this issue for A.Y. 2006-07 and examined the issue in detail. DRP is of the view that TPO did not allow the adjustment in view of lack of reliable data. Before DRP the assessee has furnished data. So far the purpose of proper comparability differences in the pries charged by the assessee and the comparables arising on account of different levels of working capital are required to be eliminated. The OECD guidelines als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that AO passed the order without considering the rectification order, subsequently passed by TPO and the directions given by DRP. 3.8 Learned counsel pleads that interest of justice will be met if the matter is restored back to the file of AO to reconsider the issue in the light of DRP directions and TPO's rectification order. 4. Learned DR is heard, who supported the order of AO. 5. We have heard rival contentions and gone through the relevant material available on record. It emerges from facts that AO has not carried out the rectification order passed by TPO and passed the assessment order without carrying out the DRP directions. In the entirety of facts and circumstances, the issue of assessee being a non-risk bearing agent has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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