9911796707
TMI Blog2018 (7) TMI 1848X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 for the A.Y.2007-08. 2. The proposed substantial questions of law framed in the memorandum of appeal by the appellants- Revenue is quoted below for ready reference: "1. Whether on the facts and in the circumstances of the case, the Tribunal is right in setting aside the Arm's Length Price determined by the Transfer Pricing Officer by relying on its earlier decision passed in ITA No.828/Bang/2010 dated 22/11/2012 even when the said orders has not reached finality as the Revenue has preferred appeal before this Hon'ble Court in ITA No.172 of 2013?. 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law holding that TNM Method adopted by TPO for determining the TP issue is not correct even when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ease of tangible or intangible property, or provision of services, or lending or borrowing money or any other transaction having bearing on the profits, income, losses or assets of such enterprise. Section 92 of the Act provides that income from international transactions between AEs shall be computed having regard to ALP. Section 92-C of the Act prescribes the method s of determining ALP, having regard to the most appropriate method which will be decided in accordance with the rules prescribed. Rule 10A(d) of the Income-tax Rules 1962 ['the Rules'] provides that 'transaction' would include a number of closely linked transactions. Rule 10B(1)(d) of the Rules advocate profit split method of determining ALP where international transactions in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r which have been categorized into 2 segments by the TPO in his order and find out if they are interlinked or interconnected so that the transactions need to be evaluated together rather than individually. In this regard, we find that the submissions made by the Assessee before TPO as well as before DRP have not been considered at all. The TPO proceeded on the basis that ALP of each transaction has to be examined independently/individually by placing reliance on the decisions of Tribunal in the case of Star India Ltd. (supra) and UKB(I) (P) Ltd. (supra). We agree with the submissions of the learned counsel for the assessee that these decisions have in fact accepted in principle that aggregation of transactions have to be done where they are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have already seen in para 9 of this order that the TPO has arrived at the bifurcation of the manufacturing and trading segmental operating results. In view of our conclusions that the trading and manufacturing segments are interlinked and therefore a combined transaction approach has to be adopted, we combine the results so arrived at by the TPO, which is given in para 9 of this order. If the segmental results are combined, the operating revenue of the assessee would be 3767.91 crores and the operating profit would be Rs. 94.34 crores. Thus, the operating profit margin on sales would be 2.517. 47. Even assuming that the adjustment on account of operational efficiency made by the TPO is to be accepted, then the combined margin after adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit Shifting (BEPS), Transfer of Shares in Tax Havens (like in the case of Vodafone etc.), if based on relevant facts, such substantial questions of law could be raised before the High Court under Section 260-A of the Act, the Courts could have embarked upon such exercise of framing and answering such substantial question of law. On the other hand, the appeals of the present tenor as to whether the comparables have been rightly picked up or not, Filters for arriving at the correct list of comparables have been rightly applied or not, do not in our considered opinion, give rise to any substantial question of law. 56. We are therefore of the considered opinion that the present appeals filed by the Revenue do not give rise to any substantia ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
