2017 (3) TMI 197

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....e submitted that the DRP by taking M/s. Ashnoor Textiles Mills Ltd., as a comparable company made adjustment on account of personal cost. According to the Ld. D.R. the assessee itself while calculating the PLI of M/s. Ashnoor Textiles Mills Ltd., has not included the other operational expenditure amounting to Rs. 4.17 crores. However, the Transfer Pricing Officer (TPO) included the operational expenditure and arrived at the profit margin at (-) 5.13%. Referring to the DRPs direction more particularly at para 3.3.4, the Ld. D.R. submitted that the under utilization of the asset employed due to lack of turnover was not allowed for the assessment year 2009-10. However, in the year under consideration, the DRP directed the TPO to decide the per....

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.... Ld. Counsel, the assessee included M/s. Ashnoor Textile Mills Ltd. and M/s. RIBA Textiles Ltd. has comparables. The Assessing Officer rejected the claim of the assessee. According to the Ld. Counsel, the assessee infact selected 4 comparables. They are as follows: 1. M/s. Ashnoor Textiles Mills Limited 2. M/s. RIBA Textiles Limited 3. M/s. SR Industries Limited and 4. M/s. Heritage India Exports Pvt. Limited 4. Out of the above 4 comparables, the TPO rejected M/s. Ashnoor Textiles Ltd. and M/s. SR Industries Ltd. on the ground that they are loss making companies. According to the Ld. Counsel for the assessee, M/s. SR Industries Ltd. was a loss making company and M/s. Ashnoor Textiles Mills Ltd., is a profitable company. Therefore the ....

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....ny direction under sub-section (5) of 144C, make such enquiry as it feels or calls any enquiry to be made by any income tax authority and report the same to it. Sub-clause 8 of 144C therefore says that the DRP may confirm, reduce or enhance the proposed draft order. However, it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of assessment order. For the purpose of convenience, we are reproducing Section 144C (7) & (8) of the Act. "(7) The Dispute Resolution Panel may, before issuing any directions referred to in sub-section (5),- (a) make such further enquiry, as it thinks fit ; or (b) cause any further enquiry to be made by any income-tax authority and report the ....