9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 922 - AT - Income TaxTP Adjustment - Selection of comparables - the assessee is engaged in provision of logistics services to its associated enterprises and also to non-associated enterprises - HELD THAT - Deselection of comparables as compared to assessee benchmarking the international transaction pertaining to provision of logistics services . Grant of credit of TDS - HELD THAT - We deem it appropriate to direct the AO to grant the credit of TDS as per law, after necessary verification/examination of details. Accordingly, ground raised in assessee s appeal is allowed for statistical purpose. Levy of interest u/s 244A - HELD THAT - As per the assessee, Rs 32,64,829 has not been refunded to the assessee. Therefore, we deem it appropriate to direct the AO to de novo adjudicate upon the issue of levy of interest under section 244A of the Act after necessary verification/examination of details. As a result, ground no. 6 raised in assessee s appeal is allowed for statistical purpose.
Issues Involved:
1. Transfer Pricing Adjustment 2. Comparability of Selected Companies 3. Credit of Tax Deducted at Source (TDS) 4. Computation of Interest under Section 244A 5. Levy of Interest under Section 234B Detailed Analysis: 1. Transfer Pricing Adjustment: The assessee challenged the addition of Rs. 2,93,56,738 to its total income under Chapter X of the Income Tax Act, 1961, made by the TPO and upheld by the DRP. The primary issue was the rejection of the companies selected by the assessee as comparables for benchmarking the international transaction. 2. Comparability of Selected Companies: The TPO rejected three out of seven comparables selected by the assessee and proposed three additional comparables. The final set of comparables selected by the TPO had an average OP/TS margin of 14.52%, resulting in an upward adjustment of Rs. 2,93,56,738. The assessee contested the inclusion and exclusion of certain comparables. - Gati Ltd (seg), Sical Logistics Limited (seg), and Seaway Shipping And Logistics Limited (seg): The assessee requested the consideration of correct margins for these companies. The Tribunal directed the TPO/AO to verify the computation of margins submitted by the assessee and arrive at the correct margins. - Balmer Lawrie and Company Ltd, South India Corporation Ltd, and Om Logistics Limited: The Tribunal found these companies functionally not comparable to the assessee and directed their exclusion. Balmer Lawrie was excluded due to its multifunctional nature and the presence of un-allocable revenue and expenditure. South India Corporation was excluded as its clearing and forwarding activities were not comparable to the assessee's logistics services. Om Logistics was excluded due to its significant asset base and warehousing facilities, making it functionally dissimilar to the assessee. - Gordon Woodroffe Logistics Limited: The assessee sought its inclusion, which was initially rejected by the TPO due to non-availability of data. The Tribunal remanded the issue to the TPO/AO for de novo adjudication, directing them to consider the data now referred by the assessee. 3. Credit of Tax Deducted at Source (TDS): The assessee claimed that the AO erred in not granting credit of TDS amounting to Rs. 10,910. The Tribunal directed the AO to grant the credit of TDS after necessary verification/examination of details. 4. Computation of Interest under Section 244A: The assessee contended that the AO incorrectly computed the amount of interest under section 244A as Rs. 1,95,888, without appreciating that Rs. 32,64,829 had not been refunded. The Tribunal directed the AO to de novo adjudicate upon the issue of levy of interest under section 244A after necessary verification/examination of details. 5. Levy of Interest under Section 234B: The assessee challenged the levy of interest amounting to Rs. 85,726 under section 234B of the Act. The Tribunal noted that this issue is consequential in nature and allowed it for statistical purposes. Conclusion: The appeal by the assessee was allowed for statistical purposes, with directions for the TPO/AO to verify and re-compute margins of certain comparables, exclude functionally dissimilar companies, grant TDS credit, and correctly compute interest under section 244A. The issue of levy of interest under section 234B was also allowed for statistical purposes. The application for admission of an additional ground of appeal was dismissed as it was not pressed by the assessee during the hearing.
|
