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TMI Blog2015 (10) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is also an undisputed fact that segmental results were made available to the TPO during the course of assessment proceedings. The TPO has not pointed out any default or error in the segmental analysis provided by the assessee. In our considered opinion, once the segmental results were made available, it was incumbent upon the TPO to consider the same for determining the ALP. A similar view has been taken in the case of M/s Honeywell Electrical devices & Systems India Ltd. Vs. ACIT [2014 (5) TMI 728 - ITAT CHENNAI] and M/s 3i Infotech Limited vs. ITO [2013 (5) TMI 834 - ITAT MUMBAI]. Drawing support from the decision of the co-ordinate Bench (supra), we restore this issue to the file of the TPO/A.O. The TPO is directed to consider the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013. 2. The assessee has raised five substantive grounds of appeal. The sum and substance of the grievance of the assessee is that the DRP/TPO/A.O. erred in law as well as on fact in making the adjustment of ₹ 6,62,00,363/- to the international transactions of the assessee with its Associated Enterprises (AEs). The assessee is a subsidiary of TRUMPF Group Company TRUMPF International Beteiligungs GmbH and TRUMPF Finance GmbH. The assessee has the following business activities (a) marketing support and after sales support services for the goods sold by its Associated Enterprises (AEs) in the territory of SAARC region for which the assessee is remunerated by way of commission, (b) manufacturing plus job work activities which was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 Import software for sale 1,15,590 # 10 Import of software for machinery 1,22,050 # 11 Reimbursement of expenses 48,10,052 At cost 12 Recovery of expenses 58,35,799 At cost The TPO observed that the assessee has benchmarked the transactions No. 1 to 6 on TNMM as per the assessee s average margin of its comparable is 12.95%. The assessee s margin is 7.99%. Accordingly, it was claimed by the assessee that assessee s margin is within 5% range as per secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee but at the same time the DRP was of the view that the assessee has not been able to controvert the basic issue raised by the TPO i.e. the largest transaction of the assessee with AEs is receipt of commission. In so far as the international transactions pertaining to import of capital goods, import of spares, consumables and tools and import of software is concerned, the assessee claimed that it has furnished relevant valuation certificates covered 93% of the total aggregated value of the transactions. The DRP observed that the assessee has not submitted valuation certificate regarding import of software for the machinery. The DRP went on to confirm the findings of the TPO. Aggrieved by this, the assessee is before us. 3. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out any default or error in the segmental analysis provided by the assessee. In our considered opinion, once the segmental results were made available, it was incumbent upon the TPO to consider the same for determining the ALP. A similar view has been taken by the Chennai Bench of the Tribunal in ITA No. 2152/Mds/2011 and in ITA No. 21/Mds/2013 in the case of M/s Honeywell Electrical devices Systems India Ltd. Vs. ACIT and M/s 3i Infotech Limited vs. ITO respectively. Drawing support from the decision of the co-ordinate Bench (supra), we restore this issue to the file of the TPO/A.O. The TPO is directed to consider the segmental results provided by the assessee and decide the issue afresh after giving a reasonable and proper opportun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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