9911796707
TMI Blog2015 (9) TMI 1744X X X X Extracts X X X X X X X X Extracts X X X X ..... d software services in technology solutions to its parent company, for products manufactured worldwide. It filed its return of income on 07.10.2010 declaring total income of Rs.129,24,35,906 under regular provisions of the Act and book profits of Rs.146,32,42,412 under section 115JB of the Act. Subsequently, the assessee filed revised return of income on 30.03.2012 declaring total income at Rs.129,24,35,906 in order to claim additional TDS credit and foreign tax credit. Thereafter, during the assessment proceedings under section 143(3) of the Act, the A.O. observed that the assessee had entered into international transactions with it's A.E. and the value of such transactions exceeded the prescribed limit. Therefore, he made a reference to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06-07 is filed before us. 4. From the material on record, we find that the TPO had issued show cause notices dated 26.08.2013 and 15.01.2015 and the assessee had filed the required details and the explanations before the TPO vide letters dated 15.10.2013 and 23.01.2014 respectively. In its reply dated 23.01.2014, the assessee had clearly stated that the adjustment proposed by the TPO is on the entire distribution segment which consists of revenue out of sales to Non-A.E. also and that T.P. adjustment is to be made to international transaction with it's A.E. only. The assessee has also given the details of the purchases with the A.E. and Non-A.E. entities. But we find that the TPO has considered the total of sales of both A.E. and non- A.E. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consider the assessee's objections to the TPO orders in judicious way. By summarily accepting the order of the TPO, the DRP has failed to perform the duty entrusted to it. However, since the TPO has not dealt with the objections raised by the assessee against the comparables selected by the TPO, we deem it fit and proper to remit the issue to the file of the assessing authority for taking necessary action of making a reference to the T'PO to deal with the assessee's objections and for passing a speaking order. The AO/TPO is directed to give fair opportunity of hearing to the assessee and also consider the judicial precedents on the issue including the orders, of the Tribunal in assessee's own case while determining the ALP ..... X X X X Extracts X X X X X X X X Extracts X X X X
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