2011 (9) TMI 226

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....rm's length price of the international transaction with associate enterprises. In ground No.8, it has challenged the levy of interest under sec. 234B and in ground No.9, it has challenged initiation of penalty under sec. 271(1)(c) of the Act. 2. As far as the issue regarding initiation of penalty under section 271(1)(c) of the Act is concerned, we are of the opinion that it is pre-matured to challenge in the present appeal. The assessee will get independent opportunity to agitate the penalty proceedings before the Assessing Officer or the authority going to impose the penalty upon it. It will have an independent right of appeal, therefore, such a plea cannot be entertained in the present appeal. This ground of appeal is rejected. 3. W....

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....ce in respect of international transaction. Learned TPO has passed an order under sec. 92CA(3) on 30th September 2009 whereby he recommended the adjustment in the ALP of international transaction at Rs.16,92,32,410. Assessing Officer has proposed addition of above amount the draft order. The matter was referred to the Dispute  Resolution Penal. The assessee has made detailed submissions. It contended that assessee has been maintaining proper transfer pricing documentation as required under sec. 92D read with Rule 10D of the IT Rule, 1962. It has submitted the TP study report before the Learned TPO. The assessee has selected TNMM method i.e. "transactional net margin method" for determining the ALP. It pointed out to the learned DRP tha....

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....asons are given for rejecting the risk analysis and other supporting arguments of the assessee. We, therefore, direct the TPO to take out Satyam as a comparable which has not been considered in other cases as well as for oblivious financial defects. The working of TP adjustment is to be worked out accordingly. We do not find any reason to interfere with the rejection of risk analysis. As regards the disallowance of deduction u/s. 10A of the I.T. Act, the assessee had claimed deduction u/s. 10A regarding its profit through STP units. The assessee claims that this has been decided in favour of the assessee for assessment year 2005-06 right up to the High Court. The A.O is hence directed to examine this issue and in case it is covered by th....