TaxTMI 
TaxTMI 
2016 (2) TMI 874
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.... percent subsidiary of Schneider France. Schneider India is engaged in manufacture of low voltage and medium voltage equipment i.e. Air Circuit Breakers (ACB), Miniature circuit Breakers (MCB), Moulded Case Circuit Breakers (MCCB), RM6, Contractors, Push Buttons and Ring Master Units. Schneider India markets products sold under its international brands - Merlin Gerin, Telemecanique, Square D, Clipsal and LK. In addition, Schneider India is engaged in distribution of the following imported equipment: * Low voltage and medium voltage electrical distribution equipment- These equipment are utilized for supplying electricity with complete safety, from medium voltage to final low voltage distribution to the consumer. * Industria....
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....ided only to its associated enterprises. 3. The assessee, conducted a Transfer Pricing (T.P.) study and thereafter made a suo motto adjustment of Rs. 1,09,39,880/- to its total income on account of adjustments in arm's length price (ALP) of Research & Development (R&D) expenses. The Transfer Pricing Officer (TPO) in his order suggested an adjustment of Rs. 83,33,833/- to the returned income. Assessment order was passed accordingly. Aggrieved the assessee carried the matter in appeal. 4. On appeal the First Appellate Authority concurred with the Ld.TPO and dismissed the appeal of the assessee. Further aggrieved the assessee is before us on the following grounds. "1. On the facts and circumstances of the case, the Ld. CIT(A) ha....
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....(2) of the Act. 3. On the facts and circumstances of the case, the Ld. CIT(A) has wrongly confirmed adjustment of Rs. 23, 72, 729 in respect of international transaction of "E-Content and/ e-catalogue services" and in doing so inter-alia have grossly: 3.1. erred in relying on the interim/unaudited margins of comparables and not considering the audited financials while calculating operating margin for determination of arm's length price considering which Appellant will fall within the +/-5% range as provided under second proviso to section 92C(2) of the Act; and 3.2. erred by selecting certain comparables which have related party transactions of more than 25% of their turnover; 4. On the facts and circ....
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....CIT(A) has erred in not allowing 5% benefit, as per the proviso to Section 92C(2) of the Act as the appellant company's case was finalized before the cut off date of 1st October, 2009. 7. On the facts & circumstances of the case, the Ld. CIT(A) has erred in not considering appellant company's calculation of +/-5% range in respect of all the International Transactions under review, despite the submissions made by the appellant company. 8. On the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming the entire addition of INR 1,43,66,383 in respect of the Appellant's international transaction pertaining to provision of research & development transaction by ignoring the contention of the Appe....
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...., the Ld.Counsel for the assessee and Shri Amarendra Kumar, Ld.CIT, D.R. on behalf of the Revenue. On a careful consideration of the facts and circumstances of the case, perusal of material on record, orders of lower authorities, case laws cited, we hold as follows. 6. The sum and substance of the submissions of the Ld.Counsel for the assessee is that, at the time of transfer pricing (T.P.) study, the audited financial statements of the comparables of all the segments were not available and hence the assessee was forced to take unaudited financial statements, for the purpose of arriving at the A.L.P. He pleaded that subsequently the audited financial statements came to be available in the public domain and that when these financial state....
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....irections on the issue of +/-5% range, and with respect to related party transactions, or regarding working capital adjustments etc. And that the set aside should be an open remand. 8. After considering rival submissions we are of the considered opinion that we have to restore the entire issue of determination of ALP to the file of the A.O. for fresh adjudication in accordance with law. When audited financial statements are available in the public domain, computation of ALP based on interim and unaudited financial statements cannot be accepted. A fresh exercise has to be done based on the audited financial statements of each of the parties for all the segments/international transactions. 8.1. Regarding the plea of the assessee to dire....