9911796707
TMI Blog2022 (12) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... d any case-law which is in favour of Revenue on this issue. We, therefore, respectfully follow the decision of Coordinate Bench of this Tribunal in the case of Aithent Technologies (P.) Ltd. (supra) and uphold the impugned order of the Ld.CIT(A) directing the Assessing Officer to restrict the Transfer Pricing adjustment only in respect of international transaction of the assessee-company with its AEs representing the sale of resins. Appeal of the Revenue is dismissed. - ITA No.1592/Ahd/2016 - - - Dated:- 15-6-2022 - SHRI PRAMOD M. JAGTAP, VICE PRESIDENT AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER Assessee by : None Revenue by : Shri Mohd Usman, CIT-DR O R D E R PER PRAMOD M. JAGTAP, VICE-PRESIDENT This app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted by the TPO and the same was revised by him at Rs.10 crores to Rs.1000 crores being 1/10th and 10 times of the turnover of the assessee-company. In the Transfer Pricing study report, the assessee-company had rejected comparables from Government Sector, Foreign Sector and Co-operative Sector. The TPO accepted the same only in respect of Government owned companies and held that other entities could not be rejected as comparables solely on the basis of that they belonged to Foreign Sector and Co-operative Sector. The TPO also rejected the entities having less than 90% of their turnover from manufacturing. He also rejected certain entities from the list of final comparables on the basis of peculiar economic circumstances as specifically po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er filter adopted by the TPO. He also upheld the action of the TPO in accepting the entities from Foreign Sector and Co-operative Sector as comparables. The objection raised by the assessee in relation to the search process carried out by the TPO was also overruled by the Ld.CIT(A) observing that the same was based upon acceptable norms. As regards the assessee s claim for working capital adjustment, the Ld.CIT(A) held that working capital adjustment was already allowed by the TPO and the assessee could not point out any specific defect in the same. Having rejected all these objections raised by the assessee, the Ld.CIT(A), however, accepted the claim of the assessee that the Transfer Pricing adjustment should be restricted only in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l pronouncements including the decision of Delhi Bench of this Tribunal in the case of Aithent Technologies (P.) Ltd. (supra) relied upon by the Ld.CIT(A) in his impugned order. At the time of hearing before us, the Ld.DR has also not been able to dispute this position. He has also not cited any case-law which is in favour of Revenue on this issue. We, therefore, respectfully follow the decision of Coordinate Bench of this Tribunal in the case of Aithent Technologies (P.) Ltd. (supra) and uphold the impugned order of the Ld.CIT(A) directing the Assessing Officer to restrict the Transfer Pricing adjustment only in respect of international transaction of the assessee-company with its AEs representing the sale of resins. 5. In the result, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
