Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 946 - ITAT MUMBAIPenalty u/s 271(1)(c) of the Act – Method for determining Arm’s length price – Held that:- The assessee has demonstrated from the transfer pricing study, that CUP method could not be applied because no comparable data were available in the public domain - This explanation of the assessee is corroborated by the fact that the T.P.O has collected the data for applying the CUP by requisition made under section 133(6) of the Income Tax Act Which clearly shows that the data were not available in the public domain and the transfer pricing officer has exercised its power under section 133(6) read with section 92CA(7) - Once the assessee has brought out the fact on record that CUP was not selected because of non-availability of data, then, the assessee's case falls under the exception provided under Explanation 7 of u/s 271(1)(c) of the Act, being acted in good faith and with due diligence - the assessee has clearly made out a case that the price in relation to international transactions has been determined by adopting TNMM in good faith and with due diligence, because the data for applying CUP were not available in the public domain – thus, the penalty in respect of the adjustment made under section 92C(4) is not justified and liable to be deleted - Decided in favour of Assesse and against Revenue.
|