2015 (5) TMI 465

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....s of manufacture and sale of various pharmaceutical products. Assessee is a subsidiary of Apotex Pharmachem Inc., Canada. For the AY under consideration, assessee filed its return of income on 27/10/07 declaring income of Rs. 12,55,16,567. During the assessment proceeding, AO noticing that assessee has entered into international transaction with its Associated Enterprise (AE) made a reference to the Transfer Pricing Officer (TPO) to determine Arm's Length Price (ALP). In course of proceeding before TPO, on perusing the report in form No. 3CEB, TPO noticed that assessee has entered into the following international transactions: Sl. No. Classification Paid/Received Amount involved (in Rs.) 1 Sale of finished goods Receive....

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....ing various grounds. 3. The DRP in an undated order disposed of the objections of assessee and in pursuance to the directions of DRP, the impugned assessment order was passed. Being aggrieved, assessee is before us raising a number of grounds. 4. However, at the outset, ld. AR submitted before us, though in course of hearing before the DRP assessee has filed elaborate written submissions on the merits of various issues raised against the determination of ALP as well as additional evidences, however, while disposing of the objections of assessee, DRP has totally ignored the submissions made on merits while selectively considering a part of it by incorporating the additional submissions. In this context, ld. AR drawing our attention to ....

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....of various issues raised against the determination of ALP by TPO has not at all been considered by DRP. On a perusal of the material on record, we find that though the DRP has considered part of the written submissions filed by assessee, which has been incorporated in the order of DRP, but, the submissions made by assessee on merits which were claimed to have been filed before DRP on 29/08/11 have not at all been considered. Furthermore, assessee's grievance that the TPO without giving assessee opportunity has changed PLI from operating profit to sales to operating profit to cost also needs to be addressed by DRP. It is worth mentioning, at the time of hearing before us, ld. AR pointed out that even while computing arm's length margin by ad....