TMI Blog2018 (6) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... dip Singh, Judicial Member Assessee By : Shri Kanchan Kaushal, Advocate Revenue By : Shri H.K. Choudhary, CIT DR ORDER Per Kuldip Singh, Judicial Member The Appellant, M/s. Boeing International Corporation India Pvt. Ltd. (hereinafter referred to as the taxpayer ) by filing the present appeal sought to set aside the impugned order dated 27.01.2014, passed by the AO in consonance with the orders passed by the ld. DRP/TPO under section 143 (3) read with section 144C of the Income-tax Act, 1961 (for short the Act ) qua the assessment year 2009-10 on the grounds inter alia that :- 1. The Ld. AO erred in assessing the income of the appellant at ₹ 30,75,37,020/- as against the returned income declared by the appellant at ₹ 16,08,18,590/-. 2. The Ld. AO/ Ld. Transfer Pricing Officer ('TPO') has grossly erred on facts and in law in enhancing the income of the appellant by ₹ 6,91,66,692 on account of incorrectly characterising the appellant as a technical consultancy service provider without taking cognizance of the fact that there has been no change in the facts and circumstances of the business of the appellant from the immed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO erred in proposing to levy interest under section 234B, 234C and 234D of the Act. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : The taxpayer is wholly owned subsidiary of Boeing International Corporation, USA which is also a subsidiary of The Boeing Company (TBC), engaged in providing business development, advisory and other support services to the Boeing Group on a cost plus basis. During the year under transaction, the taxpayer entered into international transactions with its Associate Enterprises (AE) as under :- S.No. Description of transaction Method Value (in Rs.) 1 Provision of Services TNMM 754,641,094 2 Purchase of Fixed Assets TNMM 2,739,688 3 Reimbursement of Expenses (Paid) TNMM 349,831,404 4 Reimbursement of Expenses (Received) CUP 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 5,84,43,117/- + Interest impound on outstanding receivables ₹ 5,57,72,027/-). 7. The taxpayer carried the matter before the ld. DRP by filing objections who has disposed of the objections by directing the AO to complete the assessment as per directions. Feeling aggrieved, the taxpayer has come up before the Tribunal by way of filing the present appeal. 8. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 9. Undisputedly, after the directions issued by the ld. DRP, 10 comparables have been taken up to arrive at the figure of mark-up earned by the comparable company in order to benchmark the international transaction which are extracted as under :- Sl. No. Name of the Company Adjusted OP/TC (%) 1. Alphageo (India) Ltd. 19.11% 2. Certification Engineers International Ltd. ( CEIL ) 95.07% 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,42,20,492 31-Mar-09 4,14,60,331 4,14,60,331 7-Mar-11 706 365 65,38,294 Total 5,57,72,026 11. Assessment order passed by the AO goes to prove that he has not carried out the directions issued by the ld. DRP, so we direct AO to compute on interest receivables in accordance with the directions issued by the ld. DRP. 12. Ld. AR for the assessee in order to cut short the controversy has challenged the findings returned by the TPO/DRP/AO to the extent that only three comparables viz. Certification Engineers International Ltd., Wapcos Ltd and NTPC Electric Supply Co. Ltd., which are Government companies being not valid comparables vis- -vis assessee to benchmark the international transactions. 13. The ld. DR for the Revenue in order to repel the contentions raised by the assessee contended that Government companies can only be excluded from the final set of comparables for benchmarking the international transactions if these companies are found to have taken any grant/su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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