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TMI Blog2012 (11) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... price - department's grounds of appeal are rejected - In the result, appeal filed by the department is dismissed. - IT APPEAL NO. 3531 (MUM.) OF 2009 - - - Dated:- 8-6-2012 - P.M. JAGTAP, AMIT SHUKLA, JJ. Ajeet K. Jain for the Appellant. R.C. Jain for the Respondent. ORDER Amit Shukla, Judicial Member This appeal has been filed by the revenue against the order dated 26-2-2009, passed by the CIT(A)-XXXII, Mumbai for the quantum of assessment passed under Section 143(3) read with Section 92 CA(3) on the following grounds of appeal :- (1) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the additions made by the A.O. on account of adjustments made by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Export of goods Huntsman Group 11 AEs 239,115,018 3. Services Management and service charges paid Huntsman Advanced Materials (Switzerland) GMbH 13,450,574 273,123,338 3 . In the T.P. report, for the computation of the arms length price, the assessee has adopted Transactional Net Margin Method (TNMM) and has identified four comparable parties as under :- (i) Howcoplast Chemicals Ltd. (ii) Pragati Chemicals (iii) Resins Plastics Ltd. (iv) Sreechem Resins Ltd. In the report it was stated that, since it was engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.96 C Assessee's EBIT 1.01 D Difference [B-C] 2.95 The predominant international transactions of the assessee with the associate enterprises are the Sales shown at ₹ 23.90 crores. The difference of ₹ 2.95 crores determined above is due to the sales being made to the associated enterprises as not having been at arm's length. The arm's length price of the Sales made to the associated enterprises is determined at ₹ 26.85 crores [Rs. 23.90 + 2.95]. As such, there will be an upward adjustment of ₹ 2.95 crores to the total income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and also the findings of the CIT(A) as well as the TPO, we do not find necessary to discuss the various issues as have been raised by the CIT(A) and the TPO in their respective orders. Even if the arm's length price as determined by the TPO by applying the profit margin rate of 3.13% as compared to assessee's profit margin of 1.01%, then also admittedly it falls within the +/- range of 5% as per second proviso to section 92C(2), which provides that if the variation between the arm's length price so determined and price at which the international transaction has actually been undertaken does not exceed five per cent of the latter, the price at which the international transaction has actually been undertaken shall be deemed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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