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TMI Blog2019 (5) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... application is disposed of. ITA No. 531/2019& CM Appl.No. 24637/2019 (for delay) 4. The Court has perused the application for condonation of delay. The explanation offered is not satisfactory. Nevertheless, the appeal has also been examined on merits. 5. This appeal by the Revenue is directed against an order dated 13th June, 2017 by the Income Tax Appellate Tribunal (ITAT) in ITA no. 929/Del/2017 for the Assessment Year (AY) 2012-2013. 6. By the impugned order, the ITAT has restored the matter to the file of the Transfer Pricing Officer (TPO) to benchmark the international transaction afresh by examining the suitable comparables after providing an opportunity of being heard to the Assessee. 7. The ITAT in the impugned order noted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts case was different on the functional aspects from the case of Li & Fung India Private Limited [2014] 361 ITR 85 (Del), which had been referred to by this Court in its order dated 10th April, 2018. In CM No.16423/2018, this Court passed an order on 11th October, 2018 clarifying that "there is no functional similarity" between the Assessee and Li and Fung and further "the revenue model, though similar, is not identical". 11. The ITAT has in its order dated 18th September, 2012 for AYs 2006-2007 and 2007-2008 [which order has been affirmed by this Court] noted that the functions of the Assessee and its activities are "limited to scrupulously following the hand book and other instructions provided by the parent group". It was noted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignificant advantage and the procurement service provider at significant market risk." v. The cost plus mark-up model is in absolute contrast to the percentage model whereby the service provider is assured of cost recovery along with a mark-up irrespective of the fact whether the procurer purchases any goods or not. This model puts the procurer at the disadvantage with a significant advantage to service provider. vi. It is important to note that the irrespective of the model followed, both procurer and service provider will set the terms which work in serving the best interest of both the parties, meaning putting both the parties at a win-win situation. In percentage model if the procurer feels that the percentage agreed is resulting in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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