TaxTMI 
TaxTMI 
2014 (1) TMI 891
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.... assessee for both the assessment years under consideration are common, we dispose of both these appeals by this common order for the sake of convenience. 2. As mentioned hereinabove that the grounds of appeal taken by the assessee in both the appeals are common, we state grounds of appeal relating the assessment year 2003-04 which are as under : "(1) (a) The learned Commissioner of Income-tax (Appeals) erred in rejecting the contention of the appellant that as per Transfer Pricing Regulations (TPR), the learned Deputy Director of Income-tax (International Taxation) (hereinafter referred to as "the Assessing Officer") ought to have objectively considered the facts of the case of the appellant before reaching a con....
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....s been accepted by the customs authority which would clearly indicate that the international transactions have been entered at ALP. (3) The learned Commissioner of Income-tax (Appeals) erred in upholding the action Impex Limited as comparables while applying the Transactional Net Margin Method (TNMM) for determining the ALP. 4. Without prejudice to what is stated above, the learned Commissioner of Income- tax (Appeals) erred in upholding the action of the Assessing Officer in determining the ALP by applying the net profit margin on the entire turnover. The appellant submits that the net profit margin ought to have been applied only to the pro rata sales effected out of purchases made from ....
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.... Ground No.4 of both the appeals, the relevant facts are that the assessee is a company incorporated in Israel and is a tax resident in Israel. The assessee is in the business of purchase and sale of rough diamonds. During the year 2000, Indian Branch of the assessee-company was set up with Reserve Bank of India's permission to represent the parent company and to sell the goods in local market. The assessee-company used to import rough diamonds against bulk license. The Indian branch imports goods from various parts of the world and sells it in the local market. 9. During the assessment proceedings, the AO made reference to the Transfer Pricing Officer (TPO) for determination of the Arms Length Price (ALP) with regard to the transaction re....
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.... of Emerson Process Management (India) V/s DCIT in ITA No.7878/Mum/2011(AY-2007-08) dated 25.7.2012 and the Tribunal vide paragraph 11, after considering the decision of the Co-ordinate Bench of the Tribunal in the case of Phoenix Mecano (India) Ltd V/s DCIT (49 SOT 515) has held that the final adjustment on account of transfer pricing, if any, has to be made only in respect of transactions with Associated Enterprises and not in respect of entire turnover of the assessee as made by the revenue authorities. The ld. AR further submitted that the Tribunal again considered the similar issue in the case of Dy. CIT v. Starlite [2010] 40 SOT 421 (Mum.) and the Tribunal vide paragraph 13 has held that adjustments, if any, arising due to computation....