2015 (1) TMI 94

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....od Kumar: 1. This appeal is directed against the order dated 26th December 2011, passed by the learned CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), for the assessment year 2003-04. 2. Grievance raised by the Assessing Officer is as follows: That the learned CIT(A) has erred in concluding that the international ....

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....gment (g) was doing business with non AEs, i.e. independent enterprises, in segment (b), i.e. trading, the assessee was doing business with the AEs as well as non AEs. In the course of proceedings before the TPO, the transfer pricing approach of the assessee, so far as manufacturing segment wherein the assessee had used CUP and TNMM, and trading segment, where the assessee had employed RPM, was re....

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....ons, segment (b) partly contained the transactions with non AEs, even on which TNMM was applied, and segment (g) which only had transactions with non AEs on which also the TNMM was applied. The contention of the assessee was that TNMM cannot be applied in respect of transactions with non AEs. In appeal, the CIT(A) has accepted this contention and restricted the TNMM application only in respect of ....

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....TR 304), Hon'ble jurisdictional High Court has also accepted this position. Learned Departmental Representative, even as vehemently relying upon the stand of the TPO, does not dispute this legal position but he contends that the factual elements embedded in this contention, at least on computation aspect, need to be verified by the TPO. That is only arithmetical part giving effect to this principl....