2016 (12) TMI 1408

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..... acts and in the circumstances of the case and in law, the Tribunal was justified in holding that the TPO has applied the transfer pricing adjustment to all transactions, i.e. entity level in the absence of actual segmental accounts being maintained on regular basis by the assessee ?" 3 The impugned order of the Tribunal upheld the Respondent-assessee's contention that the transfer pricing adjustment has to be made only in respect of transaction entered into by the Respondent-assessee with its Associated Enterprises. 4 The grievance of the Revenue is that in the absence of segmental accounts being maintained by the Respondent-assessee, transfer pricing adjustment had to be done at entity level. We specifically asked Mr. Chhotaray, lear .....

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..... er Ltd., Income Tax Appeal No.1873 of 2013; (Order dated 26 July 2016) (ii) CIT Vs. M/s Tara Jewellers Exports Pvt. Ltd. in Income Tax Appeal No.1814 of 2013 rendered on 5th October 2015; (iii) CIT Vs. Pedro Araldite Pvt. Ltd. Income Tax Appeal No.1804 of 2013 rendered on 24th November 2015; (iv) CIT Vs. M/s Thyssen Krupp Industries Pvt. Ltd. Income Tax Appeal No.2201 of 2013 rendered on 2nd December, 2015; (v) CIT Vs. M/s. Summit Diamond (India) Pvt. Ltd. Income Tax Appeal No.1647 of 2013 rendered on 11th July 2016. In all above appeals, this Court after hearing both sides upheld the view of the Tribunal that the transfer pricing adjustment has to be done only in respect of International Transactions with Associated Enterprises and not .....

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..... law. In this case, we find that the Revenue urges the absence of segmental accounts would warrant entity wise adjustment, when the Revenue had itself in Pedro Araldite Pvt. Ltd. (Supra) did not canvas the point, as even according to it the issue stood covered by the earlier orders of this Court in favour of the Assessee. The Revenue must apply the law equally to all and cannot take inconsistent position in law (de hors the facts) to apply different standards to different assessee. The administration of the tax laws should not degenerate into an arbitrary and inconsistent application of law dependent upon the Assessee concerned. 11 We also note that the Delhi High Court in Commissioner of Income Tax Vs. Keihin Panalfa Ltd. (ITA No.11 of 20 .....

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