2016 (12) TMI 1600

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....eal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 15th January, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 15th January, 2014 relates to the Assessment Year 200809. 2 The Revenue urges the following questions of law for our consideration: "(a) Whether on the facts and in the circumstance of the case a....

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....ssessee had reported International Transaction with its Associated Enterprises (AE). In the Transfer Pricing Study submitted by the Respondent-Assessee to the Revenue, it had included M/s. Indowind Energy Ltd. and B. F. Utilities Ltd. in the list of two comparables for the purpose of arriving at Arms Length price (ALP) in respect of its transactions entered into with its A. E. However, before the ....

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....ondent-Assessee had itself relied upon by M/s. Indowind Energy Ltd. and B. F. Utilities Ltd. as comparables. Therefore, it was not permissible for the Assessee now to withdraw the two companies from comparability analysis. (c) By the impugned order, the Tribunal allowed the Respondent-Assessee's appeal. It held that merely because an Assessee has included M/s. Indowind Energy Ltd. and B. F.....

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....mparables, a company, if the same is found to have been included on account of mistake as on facts, it is not comparable. The Transfer Pricing Mechanism requires comparability analysis to be done between like companies and controlled and uncontrolled transactions. This comparison has to be done between like companies and requires carrying out of FAR analysis to find the same. Moreover, the Assesse....