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TMI Blog2023 (11) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... f Ranbaxy Laboratories Ltd. vs. ACIT [ 2008 (1) TMI 445 - ITAT DELHI-H] . As relying on assessee own case for A.Ys. 2010-11 to 2011-12 [ 2021 (3) TMI 146 - ITAT BANGALORE] we direct the Ld.AO/TPO to consider foreign AE as the tested party. - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER For the Appellant : Shri Darpan Kirpalani, Advocate For the Respondent : Shri Veera Raghavan, Addl. CIT (DR) ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by assessee against the order passed by Ld.CIT(A) dated 09.03.2023 for A.Y. 2012-13 on following grounds of appeal. 2. At the outset, the Ld.AR submitted that the assessee wish to restrict its arguments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rs. 60,746/- 3.4 The assessee on receipt of the draft assessment order, chose to file appeal before the Ld.CIT(A), and accordingly the final assessment order was passed u/s. 143(3) r.w.s. 144C of the act on 25.04.2016 by making addition of Rs. 4,30,98,033/- in the hands of the assessee. 3.5 Aggrieved by the order of the Ld.AO, assessee filed appeal before the Ld.CIT(A). 3.6 The Ld.CIT(A) while considering the grounds of the assessee did not allow the plea of foreign AE to be the tested party for the purposes of computing the arms length margin. However the Ld.CIT(A) directed the Ld.TPO to verify whether the price paid by the assessee to its AE falls within the range of +/- 5% of the arms length price so determined. 3.7 In re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous adjustments would have to be made if a foreign entity would be taken as a tested party. Guidance is taken from decisions of Mumbai ITAT in Onward Technologies Aurionpro Solutions cases. 7. From the above paras reproduced from the DRP directions, it is seen that this is the finding of DRP that the functions and risks of the assessee are more complex in nature and that numerous adjustments would have to be made if the foreign entity would be taken as a tested party. We fail to understand the logic behind this observation of DRP because if we are taking the foreign AEs as tested party, comparison has to be between comparables of the respective country selected by the assessee in TP study and such foreign AE selected as tested part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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