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2010 (12) TMI 884 - ITAT MUMBAIStay of demand - Transfer pricing adjustments - The assessee had classified its activities in two categories i.e. manufacturing and trading - The TPO made detailed analysis of trading business and noted that it mainly consisted of the indenting commission business which had turnover of Rs. 734.83 crore whereas the trading sales were only Rs. 42.71 crores - TPO therefore separated the indenting business and noted that the profit margin shown was only 0.04% whereas in respect of trading business margin shown was 9.63% - AO therefore considered indenting business as a separate segment - TPO asked the assessee to file comparable cases which were doing the same business. The assessee failed to do so. Thereupon the TPO himself collected three comparable and computed the transfer pricing adjustments on that basis using CUP method - TNMM method had been rejected and CUP method followed in view of new facts gathered showing that indenting business was a separate segment - Prima facie no case has been made in favour of the assessee on the merit of adjustments - find no case for stay of demand.
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