2015 (1) TMI 94

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..... even as vehemently relying upon the stand of the TPO, does not dispute this legal position but he contends that the factual elements embedded in this contention, at least on computation aspect, need to be verified by the TPO. That is only arithmetical part giving effect to this principle. We see no harm in this exercise. - it fit and proper to uphold the stand of the CIT(A) in principle but remit the matter for the limited purposes of verifying the computation of excluding transactions with non- AEs in calculating the ALP required to be made under the TNMM method. To this extent, the matter is restored to the file of the TPO. - Decided in favour of Revenue. - I.T.A. No.: 962/Del/12 - - - Dated:- 25-11-2014 - Pramod Kumar and C. M. Garg, .....

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..... ourse of proceedings before the TPO, the transfer pricing approach of the assessee, so far as manufacturing segment wherein the assessee had used CUP and TNMM, and trading segment, where the assessee had employed RPM, was rejected. The TPO adopted the TNMM in respect of these segments. It is not really necessary to refer to the reasons of rejecting the methods of ascertaining the ALP, as employed by the assessee, as there is no dispute now on that aspect of the matter. The issue in dispute is with regard to the profitability of the non AE segments. In the course of applying the TNMM and preparation of segregated results for manufacturing and trading activity, the TPO reduced the components relatable to entire segment (c),(d),(e) and (f) fro .....

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..... dictional High Court has also accepted this position. Learned Departmental Representative, even as vehemently relying upon the stand of the TPO, does not dispute this legal position but he contends that the factual elements embedded in this contention, at least on computation aspect, need to be verified by the TPO. That is only arithmetical part giving effect to this principle. We see no harm in this exercise. 6. In view of the above discussions, we deem it fit and proper to uphold the stand of the CIT(A) in principle but remit the matter for the limited purposes of verifying the computation of excluding transactions with non- AEs in calculating the ALP required to be made under the TNMM method. To this extent, the matter is restored to .....

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