9911796707
TMI Blog2023 (4) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... IT, Circle 16(2), New Delhi. 2. The assessee has raised the following substantive grounds of appeal:- "A. GENERAL GROUNDS 1. Order passed by Ld. (IT (A) dated 28.06.2019 is a vitiated order as Ld. (IT (A) erred both on facts and in law in confirming additions made by the Ld. AO/Ld. Transfer Pricing Officer ("TPO") to the Appellant's income by issuing an order without appreciation of facts and law. 2. That Ld. (IT (A) erred in confirming the income of the Appellant at Rs.15,24,58,920/- as against the returned income/loss declared by the Appellant at Rs. (1,85,56,288) by sustaining an addition of INR 17,10,15,208/-, being the transfer pricing adjustment, by holding that Mitsui Prime's international transactions does not satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made. 4. Without prejudice to above grounds, Ld. CIT (A) has grossly erred both on facts and in law for: 4.1. Confusing the comparable adjustments made by Appellant while computing PLI with suo-moto adjustment to control transactions. 4.2. Disregarding the fact that where comparability adjustment is not allowed even then impact of comparability adjustment have to be on ALP not on income of the Appellant. 4.3. Disregarding the fact that where comparability adjustment is not allowed even then the ALP determined based on comparables is within the range of control transaction thus requiring no adjustment. 4.4. Disregarding the fact that it is the right of taxpayer to ask for the comparability adjustments when required and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support services 2,064,967 3 Availing of technical assistance 1,071,943 4 Payment of guarantee fee 769,421 5 Interest payment 122,834 6 Reimbursement of salary to A.Es 36,346,371 Other Method ('OM') Not Applicable 7 Reimbursement of expenses to AEs 1,792,682 8 Reimbursement of expenses by AEs 340,817 9 Issue of share capital 36,000,000 In respect of the above transactions, the principal activity of the assessee was manufacturing of polypropylene compound resins. The international transactions mentioned in S. No 1 to 4 listed above have been analysed by using a combined transaction approach and by comparing the net margin earned by the assessee from its manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(3)/144C(3) r.w.s 92CA(3) of the Act at an assessed income of INR 15,24,58,920/- [addition on account of Transfer pricing adjustment). 5. Aggrieved by the final assessment order dated 24/01/2017 the assessee preferred an appeal before the CIT(A). The Ld.CIT(A) vide order dated 28/06/2019, confirmed the income of the assessee at Rs. 15,24,58,920/- by sustaining an addition of Rs. 17,10,15,208/- being transfer pricing adjustment, by holding that Mitsui Prime's International Transaction does not satisfy the Arms Length Principle envisaged. 6. Aggrieved by the order of the CIT(A), the assessee preferred the present appeal on the grounds mentioned above. The Ground No. 1 & 2 are general in nature which requires no adjudication. The Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the outcome of the bench marking with and without adjustment made by the assessee. s N Particulars Mitsui Prime Comparabl e Comments 1. Without Ad-hoc Adjustment i.e. Price Penetration Adjustment Original Margin .83% 3.27% Falls within the (+/-) 3% tolerance band as prescribed under the second proviso to section 92C (2) of the Act [Also Refer Annexure A to the Synopsis at Page No 5- Updated Margin (submitted during TP proceedings before Ld. TPO .83% (-) .64% At Arm's Length 2. With Ad-hoc Adjustment i.e. Price Penetration Adjustment Original Margin 10.43% 3.27% At Arm's Length ..... X X X X Extracts X X X X X X X X Extracts X X X X
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