2014 (12) TMI 11

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....l under section 260-A of the Income Tax Act, 1961 from a decision of the Income Tax Appellate Tribunal dated 7 January 2014. The Assessment Year to which the appeal relates is 2008- 09. Two questions of law have been formulated by the Revenue in support of the appeal which are as follows:- "1. Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in uph....

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....assed an order under section 92CA(3) on 31 October 2011 and made transfer pricing adjustments of Rs. 12,97,33,913/-. The Assessing Officer added the amount to the total income of the assessee. The Arm's Length Price was computed on the basis of these adjustments since the margin of the assessee for exports to the associated enterprise was 1.54% whereas comparable instances showed a margin of o....

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....ntives. This order of the CIT(A) has been affirmed by the Tribunal. The Tribunal has observed as follows:- "While making a comparison of the operating profit with other comparables, the TPO is required to compute the operating profit by applying the same formula. He has no jurisdiction to apply a different formula to work out the operating profit for the comparables and for the assessee. We do ....

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....#39;s Length Price, the TPO agreed with the opinion of the CIT(A) and by a letter dated 18 November 2013 stated that the correct Arm's Length Price would have to be computed by treating the case of the assessee and comparable instances on the same footing by according the same treatment to export incentives. Accordingly, the international transaction of the assessee was considered to reflect t....