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TMI Blog2016 (7) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee u/s 10A. The order of the CIT(A) for the assessment year 2007-08 is dated 3.2.2016. It is not known whether the Revenue has filed any appeal before this Tribunal against the order of the CIT(A) for assessment year 2007-08. However, for the sake of consistency, this Tribunal is of the considered opinion that the DRP has rightly directed the Assessing Officer to consider CBDT Circular No.1 of 2013 and adjudicate the claim of the assessee u/s 10A of the Act. Transfer pricing adjustment - assessee submitted assessee-company do not have any controlling interest in respect of the so called concern with which the assessee entered into international transaction - Held that:- This Tribunal is of the considered opinion that since the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be reexamined as claimed by the ld. DR. Accordingly, the orders of the lower authorities are set aside and the issue with regard to transfer pricing adjustment is remitted back to the file of the Assessing Officer. Reimbursement in the cost and revenue base while computing the entity level margins and also TDS credit - Held that:- This Tribunal is of the considered opinion that when the tax was deducted, credit shall be given while computing the tax liability of the assessee. Therefore, the Assessing Officer shall verify the TDS credit in respect of the assessee and give necessary credit while determining the tax liability of the assessee. - I.T.A.No.760/Mds/2014 - - - Dated:- 15-7-2016 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of this order of the CIT(A), according to the ld. Counsel, the assessee is eligible for deduction u/s 10A of the Act. 4. On the contrary, Shri Joe Sebastian, ld. Departmental Representative submitted that the DRP directed the Assessing Officer to consider the claim of the assessee in the light of the CBDT Circular No.1 of 2013 dated 17.1.2013. Therefore, the assessee may not have any grievance. 5. We have considered the rival submissions on either side and also perused the material available on record. As rightly submitted by the ld. Counsel for the assessee and the ld. DR, the DRP directed the Assessing Officer to consider the claim of the assessee in the light of the CBDT Circular No.1 of 2013 dated 17.1.2013. A similar directio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be considered to be an associated concern of the assessee. However, the DRP proceeded on the presumption that the assessee is pricing the sale of the material, therefore, the assessee is deemed to have control over the Associated Enterprise. An agreement for sale/service, according to the ld. Counsel, cannot be considered to be having controlling interest over the Associated Enterprise. Unless and until the assessee has control over the management, finance etc. in respect of the Associated Enterprise, there is no question of any deeming control over the Associated Enterprise. Even though this fact was brought to the notice of the DRP, there was no finding recorded by the DRP, therefore, the matter may be remitted back to the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet Information Services India Pvt. Ltd (DB India). 11. According to the ld. Counsel, for the purpose of transfer pricing adjustment, the TPO as well as DRP are expected to take only international transaction and not domestic transaction. In the case before us, according to the ld. Counsel, DB India which was taken as one of the comparable companies by the TPO and DRP has only domestic transaction, therefore, DB India cannot be a comparable company in the case of the assessee. Therefore, the domestic transaction entered into by DB India with its non-Associated Enterprises has to be excluded. 12. We heard Shri Joe Sebastian, ld. DR also. The ld. DR very fairly submitted that the domestic transaction has to be excluded while comparing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer shall decide the matter in accordance with law after giving a reasonable opportunity to the assessee. 14. The assessee has also raised issues with regard to reimbursement in the cost and revenue base while computing the entity level margins and also TDS credit. 15. No arguments were advanced during the course of hearing with regard to these two issues. However, this Tribunal is of the considered opinion that when the tax was deducted, credit shall be given while computing the tax liability of the assessee. Therefore, the Assessing Officer shall verify the TDS credit in respect of the assessee and give necessary credit while determining the tax liability of the assessee. 16. The assessee has also raised one more ..... X X X X Extracts X X X X X X X X Extracts X X X X
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