TMI Blog2022 (12) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... a technical collaboration for manufacture of valves and accordingly owned intellectual property right therein. Hence there is wide difference in the functions of a manufacturer and assembler. It is further stated that the assessee s hydraulic products used fluids for movement of parts of a system. M/s Asco (India) Ltd. manufacturers Nuematic products which use Air as a medium for movement of parts of a system. Thus we are of the view that Asco (India) Ltd. could not be functionally comparable with the assessee and hence it cannot be considered as comparable company in the hands of the assessee. Accordingly, we direct the Assessing Officer/TPO to exclude Asco (India) Ltd. from the list of comparable companies and rework arm s length pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee furnished seven comparable companies, vide its letter dated 7.4.2011. The Assessing Officer noticed that the reporting period of three companies were different from that of the assessee company. Accordingly he rejected three companies and accepted following four companies : Sr.No. Name of Companies 1 M/s. Bemco Hydraulics 2 M/s. Dynamatic Technologies 3 M/s. Yuken India Ltd. 4 M/s. Asco Numatics The learned TPO adopted TNMM method as most appropriate method and OP/OR as Profit level indicator. The mean margin of these four companies work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w Value Magnets) only 2 % of sales TO (98/4869) Lacs (Page 13 4 of SPB) High Value Solenoid Valves constitutes 74 % of TO (4459/ 6051) Lacs (Page 17 of SPB) 4 Sale price PU of Magnets = Rs. 288 (9855148 / 34241) (Page 13 of SPB) Sales Price of Other Valves = Rs. 1802 (54922462/30483) (Page 13 of SPB) Sales price PU of Solenoid valves Rs.4,492 (445904637/99272) (Page 17 of SPB) 5 No Technical collaboration, hence, no IPR Has a technical collaboration for manufacture of Valves (Annexure to director's Report) Hence, owns IPR (See Directors' Report of FY 2007-08 and annexure thereto) (Pg 33 of SPB) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that learned TPO has specifically observed that the assessee is mainly engaged in the assembling of Hydraulic accessories. In the statement of facts furnished before the Tribunal, it is stated that the assessee s manufacturing activity contributes 2.27% in the turnover, meaning thereby, majority of turnover has been achieved by the assessee from assembling activity only. It is the submission of learned AR that the assessee is engaged in the business of assembling of more than 20,000 items. 7. From the table furnished above, we noticed that Asco (India) Ltd. is fullfledged manufacturer and it manufactures Solenoid Valves involving high technology and it constitute 74% of the turnover. This is evident from the fact that the average selli ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
