2016 (3) TMI 459

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....hether on the facts and in the circumstance of the case and in law, the Tribunal is justified in upholding the assessee's Profit Level Indicator (PLI) of OP/TC and rejecting the TPO's PLI of 'Return On Capital Employed' (ROCE) without appreciating that in the assessee's line of business of low value added jewellery manufacturing, which is working capital incentive, ROCE is the most appropriate PLI and has been rightly applied by the TPO in terms of Rule 10B(e)(i) of the Income Tax Rules, 1962? (b) Whether on the facts and in the circumstance of the case and in law, the Tribunal is justified in restricting the adjustment only on international transactions without appreciating that (i) the assessee has it....

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....cted by the DRP leading to the order of the Assessing Officer under Section 143(3) of the Act. This was in terms of the TPO order, in so far as it dealt with International Transactions; (c) On appeal, the Tribunal by the impugned order did not disturb the TNMM as the most appropriate method to determine the ALP. However, it held that though capital employed in terms of Rule 10B(e)(i) of the Income Tax Rules could be the base, the RoCE obtained in the absence of there being any segregation of the capital employed in respect of AE transaction and others, would not give an appropriate result to determine the ALP in respect of transaction with AE. Thus, in the peculiar facts it applied, the Total Cost (TC) as the base to determine the ....