TaxTMI 
TaxTMI 
2015 (6) TMI 928
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....e of Rs. 1,38,82,35,760/-. The assessee is engaged in the business of manufacturing and marketing of Lubricants and Greases, Industrial oils, Car care products, rust preventive oils and filters. The profile of the assessee is given in para 2.1 of the DRP's order, which is reproduced below for ready reference:- "2.1 The assessee, a join venture between Valvoline International Inc. USA (100% subsidiary of Ashland Inc. USA) and Cummins India Ltd., is engaged in manufacturing and marketing of automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, speciality products, greases and cooling systems products. It also offers Car Brite, Car Care products for automotive cleaning and maintenance." 3. The issue....
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....ppellant, it is submitted that the appellant generates almost entire revenue from sale of manufactured products such as automotive lubricants, transmission fluids, gear oils, hydraulic lubricants and its trading segment, having a sale of Rs. 44.74 crore out of the total sale of Rs. 763.16 crore, constitutes a mere 5.8% of the total sales. It would be appreciated that the appellant, being a fullfledged manufacturer and not a distributor, most of the AMP expense is incurred at its own discretion and for its own benefit for sale of 'Valvoline' products in India. In such circumstances, there does not result an international transaction and the appellant cannot be expected to seek compensation for the allegedly excess AMP expenditure in....
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....transactions is unwarranted (b) clubbing of closely linked transactions is permissible, (c) benchmarking of a bundle of transactions applying entity wide TNMM is permissible (d) once the Revenue accepts the TNMM as the most appropriate method, then it would be inappropriate for the Revenue to treat a particular expenditure like AMP as a separate international transaction and (e) compensation for AMP expenses could also be benchmarked under RPM or cost plus method and ,when TNMM & RP methods adopted and applied show that the net / gross profit margins are adequate, no further Transfer Pricing adjustment on account of AMP expenses would be warranted. Considering the principles laid down by the Hon'ble Delhi High Court, the AMP expenses wo....
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....gures required for coming to the conclusion pleaded by him were not available on record and an opportunity may be given to him to present the same before the TPO. He further submitted that the Revenue is also required to verify the fresh data to be submitted by the assessee. 6. Ld. DR Mr. James Judy, on the other hand submitted that the directions of Hon'ble High Court is that the Tribunal should make an endeavor to ascertain and satisfy whether the gross/net profit margin under TNMM would duly subsume AMP expenses. On enquiry from the Bench, he though not leaving his ground, agreed that data on which the conclusion could be arrived are not on record. 7. Rival contentions heard. On a careful consideration of the facts and circumstances of....
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.... other view is plausible, an order of remand for re-examination by the Assessing Officer/TPO would be justified. A practical approach is required and the tribunal has sufficient discretion and flexibility to reach a fair and just conclusion of the arm's length price." 7.2 In view of the above directions of the Hon'ble High Court, we requested both the parties to submit the details, facts and figures as well as their arguments on the above. Both the parties pleaded all that the required facts are not on record. Ld. Counsel of the assessee submitted that the issue may be remanded back to the file of the AO for fresh verification of facts. Under the circumstances, we have no other option, but to set aside the issue in dispute to the file ....