Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax-3, Mumbai Versus M/s. Thyssen Krupp Industries India Pvt. Ltd.

Appeal admitted on the substantial question of law at question no. (c). - Whether on the facts and circumstances of the case and in law, the Tribunal was justified in allowing the payment of Royalty by holding that any payment made with the approval of RBI has to be considered as being at Arm's Length Price ? - Income Tax Appeal No. 2218 of 2013 - Dated:- 28-3-2016 - M. S. Sanklecha And A. K. Menon, JJ. For the Petitioner : Mr. Ashok Kotangale a/w Ms. Padma Divakar For the Respondent : Mr. M .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

& Co. Ltd. as a comparable ? (b) Whether on the facts and circumstances of the case and in law, the Tribunal was justified in excluding the case of M/s. Engineers India Ltd. from the list of comparables ? (c) Whether on the facts and circumstances of the case and in law, the Tribunal was justified in allowing the payment of Royalty of ₹ 4,29,03,966/by holding that any payment made with the approval of RBI has to be considered as being at Arm's Length Price ? 3. Brief Fact : (a) The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

23.48 crores and also exported equipments to its AEs aggregating to ₹ 82.23 crores. The respondent assessee benchmarked these international transactions by adopting Transactional Net Margin Method (TNMM) as the most appropriate method to arrive at its Arms Length Price (ALP). (b) The respondent assessee had selected the following four comparables as benchmark to determine its ALP : Sr. No. Comparables Operating Profit Margin for F.Y. 2007-08 OP/TC 1 Mcnally Bharat Engg. Co. Ltd. 6.93% 2 W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

riram EPC to the list and benchmarked the ALP on the basis of the following six comparables as under : Sr. No. Company OP/TC% OP/Sales% 1 Tata Projects 4.98 4.74 2 Walchandnagar Inds. 11.74 10.5 3 Mcnally Bharat 11.92 10.65 4 Engineers India Ltd. 14.17 12.42 5 TRF Ltd. 20.85 17.25 6 Sriram EPC 12.69 11.26 Average 12.72 11.13 (d) On the basis of the TPO order, the Assessing Officer passed a draft assessment order dated 11th November, 2011 determining the profit level indicator of operating profit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e carried the issue in appeal to the Tribunal. By the impugned order, the Tribunal held that M/s. Gillanders Arbuthnot & Co. Ltd. be included in the list of the comparable and M/s. Engineers India Ltd. be dropped from the list of comparables to arrive at the ALP of the respondent's International Transactions. 4. Re. question (a) : (a) The grievance of the respondent assessee before the Tribunal was that M/s. Gillanders Arbuthnot & Co. Ltd. which was included in the list of comparable .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Gillanders Arbuthnot & Co. Ltd. from its Engineering Division was ₹ 74.17 crores. The impugned order of the Tribunal records the fact that the TPO had erroneously proceeded on the basis that M/s. Gillanders Arbuthnot & Co. Ltd. was not engaged in execution of turnkey project business. (b) Moreover, the impugned order also records the fact that the segment level Revenue from the Engineering Segment by M/s. Gillanders Arbuthnot & Co. Ltd. being at ₹ 74.17 crores was much m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aged in the business of executing turnkey projects. (e) Thus, question (a) as framed does not give any rise to any substantial question of law. Hence, not entertained. 4. Re question (b) : (a) The grievance of the respondent assessee before the Tribunal was that M/s. Engineers India Ltd. has been erroneously introduced as a comparable by the TPO for determining the ALP of the respondent assessee's International Transactions. The impugned order of the Tribunal records the fact that the Engine .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Updates     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version