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TMI Blog2019 (3) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... ave erred in passing the Order which is bad in law and disregarding the principles of natural justice. Legal Grounds relating to Transfer Pricing:- 2. The AO has erred in making a reference to Transfer Pricing Officer for determining arm's length price of international transactions. The learned DRP has erred in confirming the action of the AO. 3. The lower authorities have erred in a) Not appreciating that there is no amendment to the definition of "income" and the charging or computation provision relating to income under the head "Profits & Gains of Business or Profession" do not refer to or include the amounts computed under Chapter X and therefore addition under Chapter X is bad in law. b) Passing the order without dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve grounds of appeal, at any time before or at, the time of hearing, of the appeal, so as to enable the Income-tax Appellate Tribunal to decide the appeal according to law. The Appellant prays accordingly. 2. Though various grounds are raised, but they all relate to the exclusion of 2 comparables i.e., M/s. Kerala Travels Interserve Ltd., and Cox & Kings Ltd., from the final list of comparables for determination of the arm's length price on international transactions entered into between the assessee and its AE. The facts in brief borne out from the record are that the appellant company is engaged in providing tourism services to customers of Enchanting India (AE) as well as to independent customers. Enchanting India is a tourism servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rala Travels Interserve Ltd., the learned Counsel for the assessee has contended that the income of Kerala Travels Interserve Ltd., is more than 50% from the airlines commissions. The appellant further contended that the assessee is engaged in tours and travels within India which is totally different from the business of Kerala Travels Interserve Ltd. He has also invited our attention to the annual report of Kerala Travels Interserve Ltd., appearing at page Nos. 246-271 of the compilation. He has also invited our attention to the financial statements of Kerala Travels Interserve Ltd., where from it is evident that it has travel income of Rs. 3,31,68,615/- and tour income was only of Rs. 1,28,33,676/-. Besides, it also has other income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Counsel for the assessee invited our attention that this company owns brand value and is engaged in different types of tours and activities. They have also received awards and recognition. Details have been listed out at page No. 189 of the compilation. From the financials, it is also been demonstrated by the learned Counsel for the assessee that out of total revenue from operations, travel and tours commission was of Rs. 34,627 lakhs and other operating income was only of Rs. 110 lakhs. The income from Forex division was also at Rs. 2,490 lakhs. Meaning thereby, the major chunk of revenue was collected from the activities other than tour operations whereas the assessee was subsidiary of its AE and is a captive service provider for to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue is generated from the travel and tour commissions. We have also carefully examined the judgments of Hon'ble Delhi High Court in which it has been held that the brand of the company plays its own role in price or cost determination. While dealing with the brand value of Wipro Ltd., their Lordship of the Hon'ble High Court has held that the brand value plays an important role in price or cost determination. The relevant observation of the Hon'ble High Court is extracted hereunder for the sake of reference: "As to the exclusion of M/s Wipro Limited, here too, the Court is of the opinion that the brand value of an entity has a significant role in its ability to garner profits and negotiate contracts. Thus, while considering the comparab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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