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TMI Blog2015 (12) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal ('ITAT') in ITA No.5025/Del/2010 for Assessment Year ('AY') 2006-07. ITA No. 396/2015 is directed against the impugned order dated 18th November, 2014 passed by the ITAT in ITA No. 774/DEL/2012 for the AY 2007-08. 3. The Respondent Assessee is a logistics service provider, offering a bouquet of international and domestic freight handling services including time defined air and ocean transport and freight forwarding services. The Assessee has been using the Comparable Uncontrolled Price ('CUP') Method for benchmarking its international transactions with its Associated Enterprises ('AEs'). The residual profits were split between the Assessee and the AEs in the ratio of 50:50. 4. A reference was made by the Assessing Officer (AO) to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee unsuccessfully. Ultimately, the AO passed the final assessment order on 20th September, 2010 in line with the order of the TPO. A similar exercise was performed for AY 2007-08 and against both the orders of the AO appeals were filed before the ITAT. 6. The impugned order of the ITAT for AY 2006-07 noted at the outset in para 5 as under: "We find that in the present case it is not really even in dispute that in this field of business activity, the 50:50 business model (i.e. the business model of sharing residual profits in equal ratio with the service provider at the other end of the transaction i.e. at the consignee's end in the case of export transaction and at consigner's end in the case of import transaction), is a standard pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served as under: "19. It is also important to bear in mind the fact that what we are dealing with at present is a classic case in which while there is no, and there cannot be any, dispute even at the assessment stage, that the terms at which the assessee has entered into the arrangements with the AEs are the same as the terms at which the assessee has entered into arrangements with the independent enterprise, there are still some procedural issues, with regard to application of methods of determining arm's length price as set out in Rule 10B. Here is a case in which there is no dispute that the price determination for all business associates, whether associated enterprises or independent enterprises, is on the same terms and as per the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted for the Court's consideration by the Revenue are only regarding the appropriateness of adopting CUP method as against the TNMM for determination of the ALP. The question urged before the Court, not having been projected in the present appeals, is left open for consideration in an appropriate case where it is properly raised consideration in accordance with law. 13. As far as the present appeals are concerned, the Court finds the impugned order of the ITAT to be well reasoned and researched. The legal principles governing the determination of ALP in a TP adjustment exercise have been expounded lucidly by the ITAT in the impugned orders. 14. The Court does not find any substantial question of law arising from the impugned orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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