2015 (10) TMI 238

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....sessee is that the DRP/TPO/A.O. erred in law as well as on fact in making the adjustment of Rs. 6,62,00,363/- to the international transactions of the assessee with its Associated Enterprises (AEs). The assessee is a subsidiary of TRUMPF Group Company TRUMPF International Beteiligungs - GmbH and TRUMPF Finance GmbH. The assessee has the following business activities (a) marketing support and after sales support services for the goods sold by its Associated Enterprises (AEs) in the territory of SAARC region for which the assessee is remunerated by way of commission, (b) manufacturing plus job work activities which was started during the year under consideration by which the assessee has started manufacturing/job work services to third party ....

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....ssessee claimed that goods being sold by its AEs in India are not similar to the one being imported by the assessee from its AEs, therefore, there is no CUP available. Though the assessee submitted the valuation from Chartered Engineer on the basis of which it was claimed that transactions are at fair market value. The TPO was of the firm belief that assessee's annual report has no segmental accounts of indenting of machine tools and manufacturing of machine tools. The TPO was of the opinion that indenting of machine tools have different profit margin whereas manufacturing of machines has different profit margin. The TPO further observed that 91% of assessee's revenue is coming from indenting therefore all the reported transactions have to ....

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.... the DRP which is not at all been considered by the Revenue Authorities. It is the say of the ld. Counsel for the assessee that on identical set of facts in the subsequent A.Y. i.e. 2010- 11, the TPO has accepted these two segments as separate segment and has also considered the segmental results. In respect of international transactions pertaining to import of capital goods, import of spares, consumables and tools, import of tools and import of software, valuation certificates have been submitted before the Revenue Authorities. No evidence to the contrary has been brought on record by the TPO. In respect of transactions of import of software of Rs. 1,15,590/-, the ld. Counsel for the assessee stated that the same was further sold to third ....