9911796707
TMI Blog2024 (12) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 (hereinafter "the Act") pursuant to the directions of Ld. Dispute Resolution Panel-2, Bengaluru u/s 143(3) r.w.s 144C(1) of the Act dated 07.11.2016. 2. The grounds of appeal raised by the assessee are as under: "1. The learned TPO and the Dispute Resolution Panel erred in rejecting M/s.RRB Energy Limited as a comparable company, despite being functionally comparable to the assessee. 2. The learned TPO and the Dispute Resolution Panel erred on facts and circumstances in proposing an adjustment on account of lower margins, without appreciating the commercial/extraordinary parameters influencing the business of the Assessee. 3. The learned TPO and the Dispute Resolution Panel erred on facts and circumstances in not appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of Rs. 2,01,49,026/- taking comparable margins at 4.33%. The A.O issued draft assessment order to the assessee including the TP adjustment suggested by the TPO. The assessee filed objection before DRP rejecting M/s. RRB Energy Ltd. as a comparable company while arriving at profit margin of comparable company to 4.33%. The Ld. DRP has rejected the assessee's objection after examining the annual report of M/s. RRB Energy Ltd. as this company has its project only in Tamil Nadu, whereas the assessee has its presence in more than one state. The Hon'ble DRP has also noted that the comparable company has relocated the manufacturing facility as well as corporate office during the year consequently negative profit margin due to more than normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net profit margin of 4.33% of comparables. The A.O has rejected the comparable of M/s. RRB Energy Ltd. taken by the assessee on the ground that the company is showing huge negative margin and the major portion of income is from services and there is a fluctuation in margin showing abnormal year of operation. The A.O computed the segmental margin of the assessee at 1.79% and compared with comparable margin of 4.33% and made adjustment of AE purchases at Rs. 2,01,49,026/-. 7. The assessee has objected exclusion of M/s. RRB Energy Ltd. from the comparable company and had sought proper adjustment under Rule 10B to account for the economic difference between the assessee and comparable companies. The TPO and the Ld. DRP have dealt both the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
