2013 (12) TMI 1104

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..... y application has been filed by the assessee requesting for stay of demand for assessment year 2008-09. The demand has arisen on account of transfer pricing adjustment made by AO. The total demand raised is Rs. 2,09,80,592/-, which is fully disputed in appeal filed by the assessee before the Tribunal. 2. The ld. AR for the assessee submitted that the assessee for the relevant year had returned in .....

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..... this case the adjustment has been made with respect to the entire sale of Rs.80.53 crores or entire average capital employed of Rs.67.66 crores. It was pointed out that even if ROCE method was adopted, the adjustment was required to be made in relation to the capital employed proportionate to the transactions with the AE. There was therefore, prima facie error in the computation made for TP adjust .....

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..... ed that the assessee should be asked to pay some more amount. 3. We have perused the records and considered the matter carefully. There is substantial demand raised against the assessee on the basis of transfer pricing adjustment, which has been made with respect to entire average capital employed in the business company whereas, the adjustment as per law, is required to be made only with respect .....

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