9911796707
TMI Blog2014 (3) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 119.78 crores and it constituted only 39.13% of the total revenue. Thus, if at all any adjustment is made to the income of the assessee it should be restricted to the international transactions of the assessee. - ₹ 17,90,408/- was claimed by the assessee as TDS in the revised return filed for assessment year 2009-10, however, the same was not given credit by the AO. After adjusting ₹ 17,90,408/-, the balance works out to be ₹ 14,98,605/-(32,89,013-17,90,408). After going through the entire material placed before us and considering the financial position of the company vis-à-vis balance of convenience and without going much into merits of the addition, we grant stay for six months - Stay granted. - IT Appeal No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s Gemini Communication is found as comparable to the assessee then the segmental results may be considered for determination of ALP. 5. With regard to the benefit of tolerance margin of 5% as per Section 92C(2), it was contended that same should be given to the assessee as observed by the coordinate bench in assessee's own case at page 25 para 30 of the order, wherein the AO/TPO was directed to allow the benefit of the proviso if the prices of the international transaction of the assessee are within the tolerance range of +5% of the arithmetic mean of more than one comparable prices. 6. We find that issue with regard to adjustment for difference in working capital employed has been dealt with by the Tribunal at page 22 para 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee before the AO/TPO/DRP which was not properly appreciated by these authorities. This issue has been dealt with by the Hon'ble ITAT in the assessee's own case in ITA No.327 of 2013 for AY 2008-09 wherein the Bench had directed the AO to give the benefit of tolerance margin of 5%. 7. In view of the above, since the similar issue has been raised in the appeal for assessment year 2009-10, applying the findings made by the Tribunal in assessee's own case in assessment year 2008-09, the addition made by AO/TPO/DRP of ₹ 11,30,30,478/- towards adjustment of ALP deserves to be reconsidered. 8. On the other hand, learned DR strongly opposed to the Stay Application and submitted that some of the grounds have been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 3.10% as discussed was to be applied on the International Transaction with the AE's as is required under the law the adjustment required to be made would be as under :- Operating Cost (A) 2,83,76,51,093 Operating Income (B) 3,06,08,82,269 Arithmetic mean of comparables (Revised)(C) 10.97% Arm's Length revenue (D)= (110.97% of (A) 3,14,89,41,418 Revised Addition (E)=(D)-(B) 8,80,59,149 Revenue from AE's(F) 1,19,77,55,158 Total related party revenue (G)(F/B) 39.13% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same was not given credit by the AO. After adjusting ₹ 17,90,408/-, the balance works out to be ₹ 14,98,605/-(32,89,013-17,90,408). After going through the entire material placed before us and considering the financial position of the company vis- -vis balance of convenience and without going much into merits of the addition, we grant stay for six months on the following conditions : (i) the assessee will pay a sum of ₹ 15 lakhs(Rupees Fifteen Lakhs only) by 10th April,2014; (ii) the appeal is fixed for hearing out of turn on 5th May, 2014. 10. It is made clear that any adjournment petition by the assessee shall operate to vacate the stay forthwith. Registry is directed to issue necessary notice to bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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