2015 (3) TMI 613

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Sr.Adv. with Mr.Neeraj Jain, Mr.Manish Kant Advs. Mr. Justice S. Ravindra bhat (OPEN COURT) 1. The Revenue is aggrieved by the common order passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.5298/Del./2011 and 5903/Del./2012 for the Assessment Years (AY) 2007-08 and 2008-09. The question of law urged is: "Correctness of the ITAT's order directing the AO/TPO for fresh determination of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Court's judgment in Li and Fung India Pvt. Ltd. (supra). In the abovesaid judgment, this Court held as under: "39. The TPO‟s determination enhanced LFIL‟s cost base for applying the operating profit over total cost margin. LFIL‟s compensation model is based on functions performed by it and the operating costs incurred by it and not on the cost of goods sourced from third party ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on entered into with an associated enterprise is computed in relation to costs incurred or sales effected or assets employed or to be employed by the enterprise ..." (emphasis supplied). It thus contemplates a determination of ALP with reference to the relevant factors (cost, assets, sales etc.) of the enterprise in question, i.e. the assessee, as opposed to the AE or any third party. The textual ....