TMI Blog2018 (3) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... e margins derived on export of parts to AE, are not comparable with the margins derived from sales made in the domestic market. This is primarily because the margin derived in the domestic market is on account of sales of finished goods to the extent of 97%. Besides, on facts, it was found that not only the parts and finished goods are not comparable, but the class of customers to whom they sold a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following reframed question of law, for our consideration: Whether on the facts and in the circumstance of the case and in law, the Tribunal was correct in law in holding that the two segments viz: manufacturing and trading are comparable to determine the Arms Length Price (ALP) of the trading goods exported to Associated Enterprises (AE)? 3. The Respondent-Assessee is engaged in m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... margins derived from export of parts (trading activity) with the net margins derived from domestic sales. This, resulted in an addition of ₹ 62.72 lakhs in the Assessment Order dated 2nd February, 2009. 5. Being aggrieved with the order dated 2nd February, 2009, the Respondent-Assessee filed an appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. By an order dated 30th January, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Risks) analysis found that export of parts which go into the manufacture of finished goods, were not comparable with the finished goods. Thus, dismissed the Revenue's appeal. 7. Being aggrieved with the order of t he Tribunal, the Revenue is in appeal before us. Mr. Suresh Kumar, reiterates the Assessment Order dated 2nd February, 2009 and the order dated 28th March, 2008 of the TPO. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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