TMI Blog2020 (12) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appeal of the learned assessing officer are dismissed. - ITA No. 1114/Del/2016 - - - Dated:- 10-12-2020 - SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For the Revenue : Shri Sarabjeet Singh, Sr. DR For the Assessee : None ORDER PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by The Deputy Commissioner Of Income Tax, Circle (23 (1), New Delhi (the learned AO) against the direction of the learned Dispute Resolution Panel 2, New Delhi for assessment year 2011 12 issued u/s 144C (5) of The Income Tax Act, 1961 [ The Act] on 24th of November 2015 2. The the learned AO has raised the following grounds of appeal:- 1. Whether the DRP was justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The brief facts of the case show that assessee is a distributor company, who filed its return of income on 28/11/2011 declaring total income of Rs 6,47,97,832/ . Case was selected for the scrutiny and draft assessment order was passed on 17/2/2015 by making an addition of ₹ 200,573,352/ as per the adjustment suggested by the learned Transfer Pricing Officer as per his order u/s 92CA (3) of the act dated 29 January 2015. 6. The assessee was incorporated in February 2000 as a private Ltd company pursuant to receiving an approval from the Indian government to undertake specified activities in India. It is a wholly-owned subsidiary of Sharp Corporation Japan. Assessee imports business machine such as multifunction devices/printe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee selected two comparables whose gross profit margin was 8.18 percentage and the gross profit margin of the assessee was 7.84 percentage and therefore it was also found to be in the range of 5%. 8. The learned Transfer Pricing Officer noted that assessee's functions/assets and risk analysis shows that it is characterized as a full risk distributor and it assumes risk like market risk, price risk , contract risk, credit risk and inventory risk. It also uses the brand sharp‟ owned by Sharp Japan to market its products in India. Therefore the learned transfer pricing Officer was of the view that assessee was actively involved in the marketing activities for Sharp products. Therefore the learned transfer pricing officer propo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood and shall be retained d. only similar bouquet of AMP expenses as ordained as per High Court ruling shall be considered while matching assessee's expenses with those of the comparables e. TPO shall use cost plus method for this purpose f. Markup on the excess AMP expenses sale be as per subrule (ii) to rule 10 B (1) (c). 11. Accordingly the assessee's objections were disposed of. Assessee is not aggrieved with any of the directions of the learned Dispute Resolution Panel. 12. On careful consideration of the finding of the learned dispute resolution panel we note that it has issued direction following the decision of the honourable Delhi High Court in Sony Ericsson mobile Co private limited (ITA 16/2014 (2015) 55 ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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