9911796707
TMI Blog2021 (3) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... er Pricing Issues 1. The leamed Assessing Officer ('learned AO'), learned Transfer Pricing Officer ('learned TPO') and the Honourable Dispute Resolution Panel ('Hon'ble DRP') grossly erred in determining an adjustment of INR 22,62,93,193/- with respect to the international transaction entered into by the taxpayer in the certification segment u/s 92CA of the Income-tax Act, 1961. 2. The learned AO/ learned TPO/ Hon 'ble DRP erred in rejecting the TP documentation maintained by the Appellant by invoking provisions of sub-section (3) of 92C of the Act. 3. The learned AO/ learned TPO/ Hon'ble I)RP erred in rejecting comparability analysis carried in the TP documentation for the Certification Segment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um of expenses incurred. This would need to be rectified. 10. The learned AO/ learned TPO/ Hon'ble DRP has erred in disregarding the economic adjustments made by the Appellant to the net operating margin on account of extraordinary and non-recurring expenses incurred during the financial year 2012-13. 11. The learned AO/ learned TPO/ Hon'ble DRP erred in not allowing working capital adjustment in the certification segment. 12. The learned AO/ learned TPO/ Hon'ble DRP erred in accepting Certification Engineers International Ltd as a comparable even when its business is not comparable to that of the Assessee 13. The learned AO/ learned TPO/ Hon'ble DRP erred in rejecting the following companies whose business is compar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies and in this regard placed reliance on the decision rendered in 24/7 Customer Pvt. Ltd. (ITA No.227/Bang/2010), Sony India Private Ltd. reported in (2009) 315 ITR (80) 150 (Del.) wherein it has been held that comparables having RPT of up to 15% of total revenues can be considered as comparable company. Fourthly, it was submitted that the adjustment and addition to the total income should be made u/s. 92 of the Act only in respect of international transaction and not in respect of transactions with Non-AE. In this regard, the ld. counsel pointed out that out of the total revenue from certification services of Rs. 30.57 crores, only 10.19 crores was transactions with AE and therefore the adjustment should be reflected only to the transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into by the TPO in the set aside proceedings. (4) Threshold limit for applying RPT filter should be 15% or 25% of sales depending upon the availability of comparable companies after all exclusions as held by the Tribunal in the case of Auto Desk India Pvt. Ltd. Vs. DCIT [2018] 96 taxmann.com 263 (Bang.Trib.) [para 24 to 25]. 17. The above directions will be sufficient to take care of the grievances projected by the assessee in ground Nos. 5 & 6 and additional grounds No.6 (d), 26 & 27. The TPO will afford opportunity of being heard to the assessee before deciding the issue." Taking a consistent view in this assessment year also, we deem it fit to remit the issue in dispute in Ground Nos.7, 8, 9 & 10 to the file of A.O./TPO for fresh co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out prejudice to the above, for the amount considered as revenue of the current year, the learned AO ought to allow consequential benefit in the subsequent years in which the same has been offered to tax. 5. We have heard both the parties. The issue relating to the action of the revenue authorities in not recognizing income by changing the method of accounting from proportionate computation method to complete contract method. 6. After hearing both the parties, this issue came up for consideration by this Tribunal in IT(TP)A No.291/Bang/2014 vide order Dt.20.09.2019 for the A.Y. 2009-10 in para 36 as under : "36. We have considered the rival submissions and are of the view that the conclusion of the DRP in this regard deserves to be uphe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that the Assessee is at liberty to pursue remedies available to it in law and the AO shall consider the same in accordance with law and in the light of the findings as above." 6.1 By taking a consistent view, this ground is decided against the assessee. 7. The next ground is with regard to denial of TDS Credit : 1. The learned AO has erred in neither granting TDS credit as per reconciliation submitted by the Appellant nor as per Form 26AS. 2. Notwithstanding the above, the learned AO has erred in denying TDS credit on advances received which will be offered to tax as and when the same is accrued. The leamed AO ought to have placed reliance on various judicial precedents wherein it is held that credit for TDS has to be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
