2015 (7) TMI 1070

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....ss of Rs. 362,97,56,206/-. The case of the assessee was selected for scrutiny assessment. The international transactions entered into by the assessee with its associated enterprise ("AE" for short) were referred to the Transfer Pricing Officer under section 92CA(3) of the Income Tax Act for computation of Arm's Length Price ("ALP" for short). 3. The ld. TPO had passed an order under section 92CA(3) of the Act on 29.1.2013. A draft assessment order was served upon the assessee. The assessee had filed objection before the ld.DRP, and ultimately, the AO has passed assessment order under section 143(3) r.w.s. 144C r.w.s. 92CA(3) of the Income Tax Act. The leaned AO has computed the income of the assessee as under: "5. After above discussion, ....

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.... from its AE, in addition to local procurement, for their resale in India. The assessee has selected, GMDAT (General Motors Daewoo & Auto Technology Ltd.) as a tested party, but this stand of the assessee was rejected by the AO. According to the learned counsel or the assessee, if the GMDAT is selected as a tested party, then the major demand would be extinguished. He submitted that an identical issue had come before the Tribunal in the Asstt.Year 2006-07 and 2007-08. The Tribunal has accepted the stand of the assessee and directed the TPO to recompute the ALP of international transfer. The relevant findings of the Tribunal in the order dated 2.8.2013 passed in TA No.3096/Ahd/2010 and 3308/Ahd/2011 for the Asstt.Years 2006-07 and 2007-08 re....

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....has prima facie good case on merit. The colour of dispute would change, if the selection of the tested party for determination of ALP of the international transaction with AE is changed. No doubt in the order dated 25.3.2014, the learned AO while rejecting the application for stay of demand, moved under section 220 of the Income Tax Act has observed, as to why, the GMDAT cannot be taken as tested party, but, it is a debatable issue at this stage. The order of the Tribunal in the Asstt.Year 2006-07 and 2007-08 is in favour of the assessee on this issue. Therefore, taking into consideration, the facts and circumstances, we deem it appropriate to stay the outstanding demand subject to the following conditions: (a) The outstanding demand shal....