9911796707
TMI Blog2019 (3) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... ses, since those were the admitted price of the assessee itself. In those instances where there was a higher valuation shown in the imports from the Associated Enterprises, the ALP was fixed by the AO finding that there was a difference of more than 5% with the valuation of transactions with unconnected enterprises. As has been contended by the assessee, the very intention of fixation of ALP is to ensure that by mere manipulation of prices i.e. showing higher prices for imports and lower for exports, the actual profit in a transaction shall not be suppressed. Thus resulting in tax being avoided on the income generated in a transaction with an Associated Enterprise; the benefit of which will flow back to the assessee itself. The exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 92CA(3) dated 16.03.2006 at Annexure A, wherein Arm's Length Price (ALP) was fixed by the TPO. The appeal before the Commissioner of Income Tax (Appeals), Thiruvananthapuram failed and the assessment of the AO was confirmed vide Annexure C order dated 23.11.2006. The second appeal preferred by the assessee before the Tribunal also was in vain and the Commissioner's order was upheld vide Annexure D order dated 29.07.2011. 3. The main objection raised by the assessee in this appeal is that being an agricultural commodity, there is no standard bench mark for fixation of price. The ALP for all the transactions were explained with reference to the comparable uncontrolled price method and similar transactions with unconnected part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring the issue to the TPO for reason of the Instructions issued by the CBDT was dealt with elaborately, both by the first appellate authority and the Tribunal. Instruction No.3 of the CBDT dated 20.05.2003 required references to the TPO, if the value of international transaction exceeded ₹ 5 crores. There is, however, no prohibition insofar as the reference being made even when valuation is lower. In the present case, the reference was made with the approval of the Commissioner of Income Tax. We do not find any reason to interfere with the said findings of the lower authorities. 8. The main objection of the assessee is in the TPO having picked up certain transactions for the purpose of fixing ALP. The assessee had produced the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
