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TMI Blog2017 (7) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... owing grounds for our adjudication. 1. For that the order of the Learned Assessing Officer and the direction of the Dispute Resolution Panel is contrary to law, facts and circumstances of the case. 2. For that the Learned Transfer Pricing Officer and Dispute Resolution Panel have erred in rejecting CUP as the Most Appropriate method in respect of the transaction involving purchase of raw materials and freight charges from Associated Enterprises even after it was brought to the notice of Transfer Pricing Officer and Dispute Resolution Panel that no mark-up has been charged by the Associated Enterprises. 3. For that the Learned Transfer Pricing Officer and Dispute Resolution Panel have erred in considering Transactional Net Margin Metho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Panel erred in directing the Assessing Officer to disallowance the interest paid on delayed remittance of TDS amounting to Rs. 2,50,495/-, which is not the subject matter of this Assessment Year. 2.1 At the time of hearing, the ld.A.R filed additional grounds as follows:- 10. The Learned Transfer Pricing Officer and Dispute Resolution Panel have erred in not excluding the liquidated damages from operating costs for the purpose of determination of Profit Level Indicator (PLI) of the appellant. 11. The Learned Transfer Pricing Officer and Dispute Resolution Panel have erred in arriving at the PLI of the comparable company (TRF Limited) which in turn has resulted in higher Arm's Length Price (ALP). 2.2 The ld.A.R also filed a petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the TPO vide letter dated 17.08.2015 where the assessee replied as follows:- i) List of purchases - Details of party wise purchases along with brief descriptions attached herewith. ii) Purchases from A.E - During the F.Y 2011-12 total of material purchased from A.E was of Rs. 286,289,140.43. All the copies of invoices are attached herewith. As well back to back invoice copies also attached herewith. iii) Note on pricing policies from A.E: All sales made b;y the AE were on back-back basis as per copies attached. iv) Services provided to AEs -During F.Y 2011-12, total of services provided to AE was Rs. 4,609,351. All the copies of invoices are attached herewith. Also computation details of hourly rate for one invoice is attach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission by way of credit notes from the vendors and at the same time such person is able to get the material directly delivered to its own customer (assessee in present case) without disclosing the correct price or by just disclosing the invoiced price without any details of trade discounts/commission etc. Considering the above there is merit in the action of the TPO in not accepting the CUP method as adopted by the assessee." According to the ld.A.R, there is no basis for rejecting the CUP Method and it should be followed as the most appropriate method while making TP adjustments. 5. The ld.D.R relied on the orders of lower authorities. 6. We have heard both the parties and perused the material on record. As seen from the order of DR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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