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TMI Blog2018 (10) TMI 1818X X X X Extracts X X X X X X X X Extracts X X X X ..... sociated enterprise is computed in relation to costs ITA 306/2012 Page 33 incurred or sales effected or assets employed or to be employed by the enterprise ... (emphasis supplied). It thus contemplates a determination of ALP with reference to the relevant factors (cost, assets, sales etc.) of the enterprise in question, i.e. the assessee, as opposed to the AE or any third party. The textual manda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er find that in A.Y 2012-13, the TPO himself has not made any T.P. adjustment on the impugned issue. Respectfully following the decision of the Hon'ble High Court [ 2014 (1) TMI 501 - DELHI HIGH COURT ] we decline to interfere with the directions of the DRP. - ITA No. 2480/DEL/2015 - - - Dated:- 31-10-2018 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s own case for A.Ys 2006-07, 2007-08 and 2008-09 and by the order of the Tribunal for A.Y 2009-10. 4. The ld. DR could not bring any distinguishing decision in favour of the Revenue. 5. We have heard the rival submissions, carefully considered the orders of the authorities below qua the issue and have gone through the judicial decisions relied upon by the ld. AR. We find force in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related enterprises to compute the assessee s net profit margin for application of the TNMM. Rule 10B(1)(e) recognizes that the net profit margin realized by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to costs ITA 306/2012 Page 33 incurred or sales effected or assets employed or to be employed by the enterprise ... (emphasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ALP. The approach of the TPO and the tax authorities in essence imputes notional adjustment/income in the assessee s hands on the basis of a fixed percentage of the free on board value of export made by unrelated party venders . 6. We further find that in A.Y 2012-13, the TPO himself has not made any T.P. adjustment on the impugned issue. Respectfully following the decision of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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