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TMI Blog2016 (5) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... iyush Kaushik, Advocate ORDER CM 13722/2016 in ITA 252/2016 1. Allowed, subject to just exceptions. ITA Nos. 252 and 253 of 2016 2. These appeals by the Revenue are directed against the common order dated 20th August 2015 passed by the Income Tax Appellate Tribunal ("ITAT") in ITA Nos. 6463 & 5082/Del/2011 for the Assessment Years ("AYs") 2007-08 & 2008-09 respectively. 3. The Assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selected as the Profit Level Indicator ("PLI"). The TPO disagreed with the contention of the Assessee and was of the view that the cost of sale is to be included in the denominator of the PLI. The TPO, referring to Rule 10B(1)(e)(i) held that the net profit margin realized by the Assessee from an international transaction entered into with associated enterprises is to be computed in relation to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the DRP and were challenged before the ITAT by the Assessee. 8. In the impugned common order, the ITAT has followed the decision of this Court in Li & Fung India Pvt. Ltd. v. Commissioner of Income Tax (2014) 361 ITR 85 (Del.), where an identical issue had come up for consideration. This Court, in the said decision, came to the conclusion that the computation of the operating profit margin by inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present appeals. 10. It was then earnestly urged by learned counsel for the Revenue that this Court should keep open the question concerning the correctness of the consequential determination of the additions to be made to the taxable income of the Assessee whereby the TPO had construed the transactions of the Assessee to be within the +/- 5% range in terms of the second proviso to Section 92C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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