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TMI Blog2017 (8) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ba M. Singh, JJ. For the Appellant : Mr. Himanshu Sinha Mr. Manan Jain, Advocates For the Respondent : Ms. Lakshmi Gurung, Advocate ORDER 1. This is an appeal by the Assessee under Section 260A of the Income Tax Act, 1961 ( Act ) against the order dated 14th July, 2016 of the Income Tax Appellate Tribunal ( ITAT ) in ITA No.6779/Del/2015 for the Assessment Year ( AY ) 2011-12. 2. Admit. The following question of law is framed for consideration: Whether the ITAT erred in ordering a de novo determination of the Arms Length Price by the Transfer Pricing Officer upon a fresh benchmarking? 3. The Appellant/Assessee is a wholly owned subsidiary of Bechtel Corporation, USA. Its services include construction and constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer ( TPO ) by the order dated 29th January, 2015 discarded the approach followed in the TP study and proposed an adjustment of an amount of ₹ 25,22,91,427 attributable to the difference in the ALP of the international transactions entered by the Assessee with its AEs. Thereafter, by an order dated 5th February, 2015 the TPO suo moto rectified the adjustment made in the EDS segment and enhanced it to ₹ 29,64,46, 099. An upward revision of the ALP in the EDS, FAS and IT Infra segments, as well as interest on outstanding receivables, was made by the TPO. 8. The Deputy Commissioner of Income Tax/Assessing Officer ( AO ) passed a draft assessment order on 3rd February, 2015 proposing to add the aforementioned amounts as recommend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of the Assessee on account of ALP of international transactions and determined the income of the Assessee at ₹ 48,02,50,390. 10. The Assessee then filed an appeal before the ITAT which was partly allowed by the impugned order dated 14th July, 2016. The summary of the ITAT s order reads thus: i. As far as the EDS segment was concerned, the ITAT remanded the issue to the TPO for de novo consideration by observing that there were multiple changes in the comparable set from the TP study to different levels of assessment casting doubt on process of selection and retention of comparable relied upon by both the Assessee as well as the Revenue. ii. As far as the FAS segment was concerned, it was stated that as regards re-cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has placed on record a detailed chart showing the approach of the TPO, the DRP and the ITAT. This chart prima facie shows that in the EDS Segment the ITAT had failed to give any finding with regard to the exclusion of five comparables- Global Procurement Consultant Ltd.; Mitcom Consultancy Engineering Ltd.; Usha Hydrodynamics Ltd.; TCE Consulting Engineers Ltd. and IBI Chematur (Engineering and Consultancy) Ltd. 14. Although, Ms. Lakshmi Gurung submitted that the facts relating to these comparables were not available on record which prompted the ITAT to remand the matter to the TPO, Mr. Sinha denied this by pointing out the specific page numbers of the record where the said details were available. 15. The chart produced by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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