2015 (3) TMI 613

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.... For the Respondent : Mr.Porus Kaka, 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 direct....

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....ermination of the cost base in tune with this 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....

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.... the enterprise from an international transaction 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 opp....