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TMI Blog2017 (12) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... not be penalized for the error/mistake which occurred in the first place, because of wrong legal advice of erstwhile attorneys Held that:- We note that the Hon’ble Supreme Court in N. Balakrishnan Vs. M. Krishnamurthy (1998 (9) TMI 602 - SUPREME COURT OF INDIA) wherein a similar case where there was a delay of 883 days because of the mis-handling the case by the Advocate of the petitioner, the Hon’ble Supreme Court condoned the delay taking note that the petitioner cannot be faulted due to the latches of the lawyer. Similarly, for substantial justice, the assessee should not suffer because of earlier legal advice which the assessee realizes to be wrong and ready to correct. Therefore, in the interest of justice and fair play, the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Value of TP adjustment AY 2011-12 AY 2012-13 I. Sale of finished goods (ferrites) for resale 67.43 4.95 47.78 13.40 Payment of sales margin 19.40 12.82 21.92 15.10 II. Sale of finished goods (ferrites) for consumption 17.09 1.12 18.53 5.17 III. Payment for business support services 16.52 16.52 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... continued its previous year analysis and held the same transactions (as listed in SL. No. I to III above) to be undertaken at non-arm's length price. In addition the Ld. TPO alleged two more transactions (as entered into in AY 2012-13 only i.e. Sl. No. IV V) to be at non-arm's length price and proposed a TP adjustment of ₹ 68.13 cr. In appeal before the Ld. DRP, the Assessee, on being correctly advised on transfer pricing principles, revised the approach to transaction-by-transaction approach for determination of arm's length price and submitted all necessary documents for their consideration (refer page 1535-2682 of part 3 of paper book). According to Ld. AR, the Ld. DRP did not take most of the additional documents int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for benchmarking appellant's profitability under its Ferrite segment 8. Certified copy of financial information showing profitability earned by the appellant under its Kalyani unit (Ferrite segment) 9. Framework Service Agreement of Epcos AG with other group companies 10. Individual Service Agreement in relation to IT services of Epcos AG with other group companies 11. Sample copies of invoices raised by EPCOS AG on Epcos India and other group companies for provision of IT support services 12. Benchmarking report with respect to the transaction pertaining to payment for business support services (IT support and Export support services 13. Copy of organization structure of EPCOS AG's IT division engaged in rendering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilization and details of contribution earned by EPCOS, Kalyani unit from sale of ferrite for consumption to AEs for AY 11-12 and AY 12-13. 5. According to assessee, it has appointed the new law firm when the appeal was preferred before the Tribunal for A.Y 2011-12. The New Law firm after analysis of the original T. P study has advised the assessee to adopt transaction by transaction method, in place of entity level bench marking approach. According to the assessee, it should not be penalized for the error/mistake which occurred in the first place, because of wrong legal advice of erstwhile attorneys. We note that the Hon ble Supreme Court in N. Balakrishnan Vs. M. Krishnamurthy (1998) 7 SCC 123 wherein a similar case where there was a d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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