TaxTMI 
TaxTMI 
2017 (9) TMI 1282
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....61 (for short 'the Act') qua the assessment year 2010-11 on the grounds inter alia that :- "1. That on the facts and circumstances of the case and in law, the AO has erred in assessing the total income of the Appellant under section 143(3) of the Income-tax Act, 1961 ("the Act"), for the relevant assessment year at INR 22,07,25,680 as against the returned loss of INR 22,93,287. 2. That on the facts and circumstances of the case and in law, the AO has erred in passing the final assessment order which is not in conformity with the draft assessment order. 3. That on the facts and circumstances of the case and in law, the order passed by the AO being not passed in conformity with the provisions of section 92CA(4) of t....
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.... international transaction of AMP expenditure. 8. That on the facts and circumstances of the case and in law, the AO / TPO have erred in not providing the benefit of (+/-) 5% range as provided by the proviso to section 92C(2) of the Act. 9. That on the facts and circumstances of the case and in law, the AO has erred in levying / computing interest under sections 2348 and 234C of the Act." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : This is second round of litigation before the Tribunal because earlier assessment order passed by AO in consonance with the directions issued by DRP/TPO was set aside to pass a fresh order and thereafter assessment order dated 27.06.2017 has been pa....
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.... the adjustment margin of comparables as under :- S.No. Name of the comparable companies Adjusted OP/OR (% ) 1 Allied Photographics India Limited 5.04% 2 Compuage Infocom Limited Details not available 3 Computer Point Limited 1.16% 4 CCS Infotech 3.78% 5 Empower Industries India Limited 1.86% 6 Kodak India Private Limited Significant RPT 7 Mobile Telecommunications Limited 3.28% 8 MVL Industries Limited Significant RPT 9 Salora International Limited -0.09% Average OP/OR (%) 2.50% 7. Consequently, TPO made cumulative adjustment as under :- S.No. ....
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....tification application u/s 154 of the IT Act, 1961 dated 05.06.2017, which was received in this office on 07.06.2017. The relevant portion of the submission of the assessee is reproduced below:- 1) .....please note that average of adjusted operating margins earned by comparable companies (as computed by your goodself) is 2.50% as against the margin of Nikon India i.e. -1.76%. However, please note that margins earned by Nikon India falls within the +/- 5% range, as permitted under the provisions of the Act...... The contention of the assessee has been considered and the same is found to be correct after verification form records. The margins of the assessee (-1.76%) fall in the range of +/- 5% of the average margins of comp....
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.... first stage. 16. The coordinate Bench of the Tribunal in case cited as Perfetti Van Melle India Pvt. Ltd. vs. DCIT in ITA No.1073/Del/2017 dated 24.05.2017 determined the issue as to applying the BLT for determining the ALP of AMP expenses and observed as under :- "13. We want to clarify that if a situation for determining the ALP of AMP expenses arises, then no transfer pricing adjustment should be made by applying the bright line test, as has been done on protective basis, because of Hon'ble High Court has not approved the application of the bright line test in several decisions." 17. Furthermore, Hon'ble Delhi High Court in Sony Ericsson Mobile Communications India (P.) Ltd. vs. CIT-III - (2015) 55 taxmann.com 240 (Delhi)....