TMI Blog2021 (2) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the TPO/AO. All the other issues have to be decided once the issue of recharacterization has been determined by the TPO/AO. Therefore, we are remanding back all the issues to the file of the TPO/AO - Assessee be given opportunity of hearing by following principles of natural justice. Hence, appeal of the assessee is partly allowed for statistical purpose. - ITA No. 2247/DEL/2017 - - - Dated:- 24-2-2021 - SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER For the Appellant : Sh. Nageshwar Rao Sh. Purushottam Anand, Advs For the Respondent : Sh. Surender Pal, CIT(DR) ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the assessee against order dated 19/01/2017 passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction, and erred in holding the Appellant as an advertisement and marketing agency as against a routine marketing and sales support service provider, thereby vitiating the comparability analysis so undertaken. 5. Ld.TPO / AO / CIT-A have erred in not considering/upholding use of Operating Profit to Value Added Expenses ( OP/VAE ) as an appropriate Profit Level Indicator ( PLI ) to benchmark the impugned transaction. 6. Ld.AO / TPO / CIT-A have erred in rejecting certain companies selected as comparable by the Appellant in its TP documentation for benchmarking the impugned transaction without ascribing cogent reasoning thereto. 7. Ld.AO / TPO / CIT-A have erred in arbitrarily including certain companies which are not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income for AY 2011-12 on 14.09.2011 declaring an income of INR 7,381,430 on which tax liability of INR 2,366,105 was paid by the assessee company. The return of income of the assessee company was selected for scrutiny and various information / documents as and when called for were duly furnished by the assessee company. The matter was referred to Transfer Pricing Officer and the TPO passed order dated 28/11/2014 thereby making adjustment at Rs. 2,26,18,345/-. The draft assessment order dated 01.01.2015 was passed under section 144C of the Act. The final assessment order under section 143(3) of the Act was passed on 30.03.2015, wherein the total income of the assessee company was re-determined at INR 29,999,770 (as against returned inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cterization of HTC India as an Advertisement Agency, the Ld. AR submitted that the TPO/AO has not looked into the TP Documentation wherein it is clearly mentioned that the assessee company undertakes sales and Marketing Support Services for nature of coordination support and acts in as communicator for exchange of information between HTC Taiwan and Distributor. The functional analysis which was misquoted by the TPO is correctly documented on Page 16 of TP Study as regards working capital adjustment. Therefore, the Ld. AR submitted that the entire issue should be remanded back to the file of the TPO/A.O to take into all these contentions of the assessee. 6. The Ld. DR submitted that the TPO has taken cognizance of all aspects as well as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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