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TMI Blog2016 (1) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... Krupp Industries India Pvt Ltd [2015 (12) TMI 1076 - BOMBAY HIGH COURT ] has taken a view that the ALP adjustment arrived at is only to be restricted to the international transaction entered into by the Respondent and could not apply to transactions entered into with non-A.E. This is for the reason that in terms of Chapter-X of the Act the mandate is to redetermine the consideration only with regard to International transaction with A. E. We find that the impugned order has merely laid down the principles to be applied for the purposes of transfer pricing adjustment by restricting the same only to the international transactions entered into with the A. E. No fault can be found with the impugned order of the Tribunal in restoring the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in coming to the conclusion that AO/TPO were not justified in excluding gain on foreign exchange fluctuation from the total revenues for the purpose of computing OP/OC? 3 Regarding Question(A):- (a) The Respondent Assessee is engaged in the business of trading in diamonds including exports. In the subject assessment year, the Respondent Assessee had international transactions with its Associated Enterprises(AE) in U. S. A. This resulted in the Assessing Officer making a reference to the Transfer Pricing Officer(TPO) to ascertain the correct Arm Length Price(ALP) of the transactions. (b) The TPO enhanced the consideration in respect of its international transaction to arrive at the ALP on operating margin at 7.32%. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration only with regard to International transaction with A. E. (e) The further grievance of the Revenue was that the accounts as submitted by the Respondent Assessee were in such a form that it is impossible to bifurcate the transaction entered into with A. E. 's and non A. E.'s. However, it has been pointed out to us that consequent to the impugned order of the Tribunal restoring the issue to the Assessing Officer, an order dated 27th August, 2013 has been passed by the Assessing Officer and no difficulty as canvassed by Mr. Ahuja was faced by him. A copy of the order dated 27th August, 2013 was handed over to us across the bar and it is taken on record and marked Exhibit-"X" for identification. Moreover, we may point out that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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