Transfer Pricing - Adjusment only in respects of Transactions with AE
B. V. Jhaveri
COUNSEL (DR) :
HIGH COURT APPEAL NO :
1814 of 2013
DATE OF ORDER:
2006 - 2007
“Whether in law and on the facts of the instant case, was the Tribunal justified in holding that while computing the ALP of international transactions the AO/TPO is precluded from taking into consideration transactions with Non Associate Enterprises, while arriving at the ALP using the Net Transactional Margin Method (TNMM); whereas Rule 10B(1)(e) mandates the consideration of profit margins with unrelated enterprises?
(a) Whether on the facts and circumstances of the case and in law the Tribunal was justified in coming to the conclusion that there was nothing on record to show that the profits arrived at by the assessee in respect of the 10A unit carrying on the business of manufacturing industrial sewing machine needles was not in the normal course of its business and that the abnormally high profit was due to extraordinary arrangement between the assessee and the German company entered into only with a view to boost the profits of the assessee and therefore allowing deduction of Rs.20,53,26,910/?
(b) Whether on the facts and the circumstances of the case and in law the Tribunal was justified in holding that there was no material available with the assessing officer to estimate the profits of the 10A unit eligible for deduction invoking the provisions of section 80IA(10) read with section 10A(7) of the Act was based on proper and reasonable appraisal of the material available on record?”