9911796707
TMI Blog2015 (3) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... stands settled in the previous order reported in [2014 (1) TMI 501 - DELHI HIGH COURT] - pertaining to the present assessee wherein held that there is no legal authority under the Income Tax Act, 1961 or the Rules to broaden the cost base in that manner. Consequently, the ITAT directed a remission of the matter to the AO for redetermination of the cost base. The TPO’s reasoning to enhance the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Bhat And R.K.Gauba JJ. For the Appellant : Mr.Kamal Sawhney, Sr.Standing counsel with Mr.Mukul Mathur and Mr. Shikhar Garg, Advs. For the Respondent : Mr.Porus Kaka, Sr.Adv. with Mr.Neeraj Jain, Mr.Manish Kant Advs. Mr. Justice S. Ravindra bhat (OPEN COURT) 1. The Revenue is aggrieved by the common order passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.5298/Del./20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 or the Rules to broaden the cost base in that manner. Consequently, the ITAT directed a remission of the matter to the AO for redetermination of the cost base in tune with this Court s judgment in Li and Fung India Pvt. Ltd. (supra). In the abovesaid judgment, this Court held as under: 39. The TPO‟s determination enhanced LFIL‟s cost base for applying the operating profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses to compute the assessee s net profit margin for application of the TNMM. Rule 10B(1)(e) recognizes that the net profit margin realized by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to costs incurred or sales effected or assets employed or to be employed by the enterprise ... (emphasis supplied). It thus contemplates a d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities in essence imputes notional adjustment/income in the assessee s hands on the basis of a fixed percentage of the free on board value of export made by unrelated party venders. 4. Such being the position, this Court is of the opinion that question of law urged in both the appeals does not arise since it already stands settled in the previous order - pertaining to the present assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
