2014 (11) TMI 986

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.... Per Pramod Kumar: 1. This appeal is directed against the order dated 31st January 2012, 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 2004-05. 2. Grievance raised by the Assessing Officer is that the "CIT(A) has erred, in facts and circumstances of the case, in deletin....

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.... various international transactions with its AEs. The assessee's business is in various segments, namely (a) manufacturing, (b) trading. (c) software, (d) technical services, (e) info gathering, (f) marketing, and (g) others. While (a),(c),(d),(e),(f) segments were doing business only with AEs, and segment (g) was doing business with non AEs, i.e. independent enterprises, in segment (b), i.e. trad....

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....ment (c),(d),(e) and (f) from overall profits. What was thus left out was profits of segment (a), profits of segment (b) and profits of segment (g) on which PLI as per the TNMM was applied. The assessee was aggrieved of this computation inasmuch as while segment (a) consisted of all intra AE transactions, segment (b) partly contained the transactions with non AEs, even on which TNMM was applied, a....

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....nternational transactions with the AEs and cannot extend to the transactions with non AEs. There are large number decisions of the coordinate benches, including in the case of Alstom Projects India Ltd Vs ACIT [26 ITR (Trib) 322], holding so. In the case of CIT Vs Stratex Networks India Pvt Ltd (354 ITR 304), Hon'ble jurisdictional High Court has also accepted this position. Learned Departmental R....