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TMI Blog2018 (6) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... fault with This is self evident position from the reading of the aforesaid provision that all aspects/ difference between the international transactions and the comparable uncontrolled transactions which materially affects the net profit margin had to be taken into account so as to have the fair comparison while determining the ALP of the tested party's transaction. No substantial question of law as Rule 10B (1)(e)(iii) of the Rule is self evident Appeal admitted on the substantial question of law at (c) - Whether on the facts and circumstances of the case and in law, the Tribunal was justified in not appreciating that the Assessing Officer had correctly computed the deduction yearwise as per clause (iii) of Explanation 1 to section 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per clause (iii) of Explanation 1 to section 115JB of the Act? 3 Re. Question (a): (i) The learned Counsel appearing for the Revenue very fairly states that the issue arising herein stands concluded against the Revenue and in favour of the RespondentAssessee by the decision of this Court in CIT v/s. Petro Araldite Pvt. Ltd., (Income Tax Appeal No. 1804 of 2013) decided on 24th November, 2015. (ii) Moreover, it is also accepted by the Revenue that so far as this Court is concerned, this issue stands concluded against the Revenue by the following decisions of this Court; (a) CIT v/s. Ratilal Becharlal Sons (Income Tax Appeal No.1906 of 2013), decided on 24th November, 2015; (b) CIT v/s. Goldstar Jewellery Design (P) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a number of such transactions is computed having regard to the same base; ( iii) the net profit margin referred to in subclause (ii) arising in comparable uncontrolled transactions is adjusted to take into account the difference, if any, between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions, which could materially affect the amount of net profit margin in the open market; ( iv) the net profit margin realised by the enterprise and referred to in subclause (i) is established to be the same as the net profit margin referred to in subclause (iii); ( v) the net profit margin thus established is then taken into account to arrive at an ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he capacity utilization of the comparable, in the present facts, as it materially affects the profit margin, the invocation of Rule 10B (1) (e)(iii) of the Rules, cannot be found fault with This is self evident position from the reading of the aforesaid provision that all aspects/ difference between the international transactions and the comparable uncontrolled transactions which materially affects the net profit margin had to be taken into account so as to have the fair comparison while determining the ALP of the tested party's transaction. (vi) Therefore, this question does not give rise to any substantial question of law as Rule 10B (1)(e)(iii) of the Rule is self evident. Thus, not entertained. 5 Re. Question (c): Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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