TMI Blog2015 (9) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the profit margin of the Respondent-Assessee with those of the Comparable companies after adding in the DEPB benefit obtained by it. This was particularly so as the comparison has to be between comparables and the Respondent on a like measure. The contention of the Revenue to ignore the DEPB in case of Respondent-Assessee when the same is taken into account for determining the price of comparables leads to distortion in comparison. On facts, two authorities have come to a concurrent finding of fact that no Transfer Pricing adjustment is called for as the difference between the profit of comparables and Respondent-Assessee is less then 5% i.e. well within the safe harbor Rules. This finding of fact has not been shown to be perverse and/o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Transfer Pricing Officer/Assessing Officer in their orders and thereby misdirected themselves in law by relying on partly irrelevant material in drawing their conclusion? 3 So far as Questions (a) and (b) are concerned, Mr. Suresh Kumar, learned Counsel appearing for the Revenue very fairly states that the issue raised in Questions (a) and (b) stands concluded against the Revenue by the decision of this Court in Godrej Boyce Manufacturing Co. Ltd. v/s. DCIT 328 ITR 81. We are informed that by an order dated 28th October, 2013, the Apex Court has also dismissed the SLP filed by the Revenue from the order in Godrej Boyce Manufacturing Co. Ltd. (supra). 4 Accordingly, Questions (a) and (b) do not give rise to any substant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent-Assessee would be 12.30% and not 5.04% worked out by the Assessing Officer. This profit margin of 12.30% when compared with the profit margin of comparables at 13.05% fell with the safe harbor Rules of 5%. Thus by order dated 25th November, 2009, the CIT(A) held that no Transfer Price adjustment is called for. 7 On Appeal both by the Revenue and the Assesee, the Tribunal upheld the application of TNMM and dismissed the assessee's appeal. Similarly, the revenue's appeal before it was also dismissed after noting that the DEPB benefit was not taken into consideration by the Assessing Officer/TPO for the purpose of working out the profit margin of the Respondent-Assessee whereas the said benefit was taken into account while com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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