9911796707
TMI Blog2016 (1) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... of Arm's Length Price. 3. The brief facts of the case are that the assessee has imported coal and supplied to various parties in India. The coal was imported from Dubai and such coal had the original of Chinese, South African and Indonesia Countries. There was a price difference between these varieties keeping in view their quality and other factors and there are seven such transactions, which is as follows : Since, there is price variation for more than five persons, the Assessing Officer considered the TP adjustment at Rs. 30,07,072. The assessee carried the matter to the CIT(Appeals). 4. The ld. AR, submitted before the CIT(Appeals) that on account of geographical difference between the various suppliers from different countries, some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces charged to others being comparable, uncontrolled transactions. Further, he observed that the plea of the assessee was that the price variation in imported coal is due to location of different ports and difference in price is due to difference in freight rate and diversion charges. The CIT(Appeals) further observed that the TPO adopted the price paid for the third party as ALP in respect of coal shipments from South Africa only. According to him, in the said shipment the variation was 5.04%, the TPO recommended adjustments of Rs. 30,07,072/- as adjusted price difference, which was adopted by the Assessing Officer in the assessment order. 4.2 The CIT(Appeals) observed that the TPO has not properly applied the arithmetical mean in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at determining the ALP and if it is variation is below 5%, there could not be any TP adjustment in view of sec.92(C) of the Act. On the other hand, the ld. DR submitted that transactions can be considered as one unit only if they are closely linked. We have gone through Rule 10A(d) and 10B of the I.T. Rules. On a combined reading of these two Rules, a number of transactions can be aggregated and construed as a single transaction for the purposes of determining the ALP provided that such transactions are 'closely linked'. Ostensibly the rationale of aggregating 'closely linked' transactions to facilitate determination of ALP envisaged a situation where it would be inappropriate to analysis the transactions individually. The proposition that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the present case, we find that all the seven sets of international transactions undertaken by the assessee cannot be considered as 'closely linked'. We, therefore, refuse to accept the contention of the assessee's counsel. Being so, we find that the judgment relied on by the ld. DR in the case of Development Consultants (P) Ltd. v. DCIT (23 SOT 455), wherein it was held that the ALP should be determined on a transaction-by-transaction basis and not on an aggregate basis as argued by the assessee's counsel. The same view was taken by the Tribunal in the case of ACIT v. UE Trade Corporation (India) (P.) Ltd., 44 SOT 457 (Delhi), wherein it was held that the Assessing Officer was within his jurisdiction for the purpose of determining of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
