TaxTMI 
TaxTMI 
2011 (7) TMI 154
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....f the order of the Transfer Pricing Officer (TPO) passed under section 92CA(3) on 28-10-2009 and also the order of the Dispute Resolution Panel (DRP) at Chennai dated 23-9-2010. 2. The assessee-company is engaged in the import of coal and supplying the same to various consumers in India like Tata Power, GNFC, TCP Ltd., Malabar Cements Ltd., Mysore Paper Mills, Madras Cements etc. The assessee-company makes import of coal from its Associate Enterprise (AE). In effect, this is a Transfer Pricing Appeal. M/s. Coal & Oil LLC, Dubai is the AE which supplies coal to the assessee for importing the same to India. 3. The Assessing Officer referred the question of determining the Arm's-Length Price (ALP) to the TPO on the basis of this relation....
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.... of evaluating the ALP, after considering the facts of the above case and the present case, the DRP came to the conclusion that the decision of the ITAT, Mumbai Bench is limited to the facts of that case and cannot be treated as a precedent to be followed. The DRP after examining the facts of the case held that the meaning of the CUP method itself is the comparison of variables in an uncontrolled price factors, and particularly, in the present case, comparison of uncontrolled prices, is the most appropriate method. The DRP accordingly, upheld that proposal of the TPO. Finally, the proposal was converted into adjustment by the assessing authority resulting in an addition of Rs. 3,49,14,706. The assessee is aggrieved and therefore, the appeal....
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....mported goods. The valuation made by the customs authorities is not an arbitrary exercise. But on the other hand, it depends upon large volume of international data classified according to internationally accepted protocol. Therefore, it is not possible to say that the credibility of the price rate furnished by customs authorities needs to be discounted. 7. It is always possible for an assessee to establish its case for a different price other than the customs price provided the assessee has produced acceptable materials to support its proposition. In the present case, except its own internationally generated price, the assessee has not furnished any comparable data. Therefore, the assessee has no locus standi to question the credibility....
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....adaptability of CUP method by the TPO. It is a method of comparing uncontrolled prices. We agree with the DRP that the essence of CUP method is a free comparison of variables in a free market condition. Controlled market condition is not as such recognized by the statute formulated for transfer pricing. But as a practical manifestation, a comparison of controlled prices may become necessary. It of course, depends upon the facts and circumstances of a particular case. In the present case, we do not find any special reason to rely on a comparison based on controlled prices. The CUP method as construed in the statute has to be applied in the present case. When it is so applied, we find that the import of coal made by the assessee from its AE h....