TMI Blog2018 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... e ALP exactly in the way directed by the ITAT. - Decided in favour of assessee - ITA No.1425/Hyd/2014 - - - Dated:- 24-1-2018 - Smt. P. Madhavi Devi, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For The Assessee : Shri S.P. Chidambaram For The Revenue : Smt. U. Minichandran, DR ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for the A.Y 2006-07. In this appeal, the assessee is aggrieved by the assessment order dated 30.06.2014 passed u/s 143(3) r.w.s. 144C and 254 of the I.T. Act. The assessee has raised the following grounds of appeal: 1. That the Transfer Pricing Officer (TPO)/the Assessing Officer (AO) erred in not accepting the price of international transactions of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n its original order dated 30 October 2009 which was confirmed by the DRP and Hon'ble Tribunal should not have been ignored while passing the final order. 8. That on the facts and circumstances of the case, the DRP/TPO/AO erred in rejecting Central Scientific Suppliers Limited, one of the comparable selected by the Appellant in accordance with the provisions of the Act read with the Rules. 9. The Learned AO erred in imposition of interest under section 234B and Section 234D . 2. Brief facts of the case are that the assessee, a wholly owned subsidiary of St. Jude Medical Inc. is engaged in trading of Cardiac Rhythm Management, Cardiac Surgery and Cardiology Devices manufactured by its group companies. The assessee purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was sold has to be considered for determining the ALP. After considering the purchase price from the AE in respect of the goods sold, the addition has to be made towards normal average GP margin on sales and thereafter deduction is to be made towards marketing expenses and other adjustments i.e., towards functional, economic differences and working capital at 3% of the ALP as determined by the DRP. Accordingly, with these directions, we set aside the order of the Assessing Officer and remit back the entire issue to the file of Assessing Officer to re-determine the ALP in accordance with Rule 10B(1)(b) of the IT Rules and thereafter compute the additions if any required to be made u/s 92C(A) with regard to the difference between ALP and pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,97,663 and in accordance therewith, a final assessment order is passed against which the present appeal is filed by the assessee before us. 5. The learned Counsel for the assessee submitted that the TPO, in his original order dated 30.10.2009, had added the marketing expenses of ₹ 2,71,46,889 incurred by the taxpayer to the purchase price of the goods and reduced the same from resale price to arrive at the margin of the assessee and that the same has not been disturbed by the ITAT. He submitted that the ITAT has only directed that after considering purchase price in respect of the goods sold, the addition has to be made towards normal average GP margin on sale and thereafter, the deduction is to be made towards marketing expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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