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TMI Blog2024 (12) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... ) @ 3.58% and arrived at average of net profit margin of 4.33% of comparables. AO 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. AO computed the segmental margin of the assessee at 1.79% and compared with comparable margin of 4.33% and made adjustment of AE purchases. 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. TPO and the DRP have dealt both the issues in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessee had adopted the same price for imports, for current year and previous year and also ignoring the transfer pricing of the Assessee, violating the principles of consistency. 4. The learned TPO and the Dispute Resolution Panel erred in law and on facts in not considering appropriate adjustments under Rule10B of the Income Tax Rules, 1962 (The Rules) to account for the economic differences between the Assessee and the comparable companies. 5. For the above grounds and for any other grounds that may be adduced at the time of hearing, the appellant prays to the Hon'ble Income Tax Appellate Tribunal to grant appropriate relief as it deems fit. 3. Grounds No.1 to 4 are relating to rejecting M/s. RRB Energy Ltd. as a comparable comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has also objected order of TPO in not granting adjustment on account of commercial and extraordinary parameter enhancing the business losses like delay in approval of electricity board, abnormal rise in the cost of permanent magnet, and adverse movement of foreign exchange and the custom duty adjustment. The Hon ble DRP has rejected assessee s objection as these are common issues across the industry and the TPO has analyze the issue in clear and cogent manner and all these factors have been factored in while determining the profit margin and comparables. The Hon ble DRP relied on the order of co-ordinate Bench of this Tribunal in the case of Mobis India Ltd. vs. Dy. CIT [2013] 38 taxmann.com 231 (Chennai-Trib.) and rejected the objec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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