9911796707
TMI Blog2021 (2) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... arious facets of Transfer Pricing Adjustment of Rs.4,99,37,624. 3. Brief facts of the case are as follow: The assessee is a subsidiary of Kennametal Inc. USA. It is engaged in the business of manufacturing of hard metal products, special purpose machines and metal forming tools. For the assessment year 2014-2015, the return of income was filed on 27.11.2014 admitting total income of Rs.15,98,22,400. The assessment was taken up for scrutiny by issuance of notice u/s 143(2) of the I.T.Act. During the course of assessment proceedings, the matter was referred to the Transfer Pricing Officer (TPO) since the assessee had international transactions exceeding Rs.15 crore for the relevant assessment year with its Associate Enterprise (AE). The TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td (Mitsubishi) (f) Birla Precision Technologies Limited (g)Federal-Mogul Anand Bearings India Limited. 5. The learned AR submitted that identical issue of transfer pricing adjustment was considered by the Tribunal in assessee's own case for assessment year 2013-2014 in IT(TP)A No.2880/Bang/2017 (order dated 27.04.2020). It was stated that in assessee's own case for assessment year 2013-2014, the Tribunal had restored the entire transfer pricing adjustment to the files of the AO/TPO for de novo consideration. It was contended that similar view may be taken for the relevant assessment year since the transfer pricing adjustment undertaken by the AO/TPO for assessment year 2013-2014 is identical to the instant case. 6. The learned Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is found that above 4 comparables qualified all filters adopted by the TPO and are functionally comparable. Panel finds that objections and submissions of assessee made before TPO have been considered and countered by the TPO correctly. Therefore assessee's objection against adoption of Ace Multi Axes Systems Ltd., Micromatic Manufacturing Systems P Ltd; Federal Mogul Anand Bearings India Ltd; Birla Precision Technologies Ltd are not accepted." 11. With regard to the plea of the assessee for inclusion of two comparable companies, the Ld DRP has observed as under:- "7.6 At para 8 of his order the TPO has considered submissions of the assessee and has accepted the contention of the assessee in the case of Bharat Fritz Werner Ltd. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In totality, we are of the view that the Ld DRP has passed a nonspeaking order. In this view of the matter, we are of the opinion that all the issues relating to Transfer pricing adjustment need to be restored to the file of Ld DRP/AO for adjudicating all the objections of the assessee by a speaking order. Accordingly, we set aside the Transfer pricing adjustment made in the final assessment order and restore all the issues relating there to the file of AO/DRP with the direction to the Ld DRP to pass a speaking order. 7.1 In view of the above order of the Tribunal, the entire issue raised in this appeal are restored to the files of the AO/TPO to arrive at fresh ALP of the international transaction undertaken by the assessee with its AE. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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