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2014 (4) TMI 114

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....ctions and disregarding the material placed on record thereby not following the procedure laid down u/S. 144C(5), 144C(6) & 144C(7) of the I.T. Act." 3. M/s Itron Metering Solutions India Private Limited (formerly known as CG Actaris Electricity Management Private Limited) was incorporated on January 1, 1993 as a 51:49 joint venture between Schlumberger Industries, France and Crompton Greaves Limited to manufacture and trade in electricity meters. The assessee is primarily engaged in trading of electricity meters. It imports electricity meters from its associated enterprises for resale to third parties in India. The assessee was engaged in the following international transactions:-      - Purchase of electricity meters....

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....ar ending 31.3.2008. Thus, it was concluded by the assessee that its international transaction relating to import of electricity meters for resale is at the arm's length. 5.2 The assessee also availed management services from its associated enterprises as part of intra group services. The fee was charged on basis of cost allocations based on turnover with an appropriate mark up. Considering the functional and risk profile of this transaction and the available comparable data, assessee chose the TNMM with Net Operating Profit Margin based on cost (NCP) as the PLI as the most appropriate method.      Further, for the purposes of testing the arm's length nature of the international transactions relating to receipt of mana....

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....wings CUP 2305142 4. Interest of ECB CUP 4370153 TPO rejected RPM as the most appropriate methodology for the benchmarking of international transaction of purchase of electricity meters and their subsequent re-sale. 6. Against the above order of the Ld. TPO, assessee filed comprehensive objections and submitted various details before the Ld. DRP contesting the action of the Ld. TPO. The Ld. DRP did not deal with the assessee's objections and the details and documents submitted before it. It referred to the TPO's observations and summarily rejected the assessee's objection and affirmed the action of the TPO. 7. Now we find that the assessee is pleading that Ld. DRP should have passed a proper and speaking order dealing with the obje....