2016 (12) TMI 1656

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....ced Materials India Pvt. Ltd. vs. ACIT) directions dated 25.09.2012, in proceedings under section 143(3) r.w.s. 144C(1) of the Income Tax Act, 1961; in short "the Act". 2. We come to assessee's pleadings. The instant case file indicates that its sole substantive ground pleads that the Transfer Pricing Officer (the TPO) & the above DRP have erred in making transfer pricing adjustment of Rs. 73,43,657/- in respect of its international transactions of provision of marketing support services rendered to its eponymous associate enterprises based in Europe and Asia Pacific region totaling to Rs. 7,73,62,467/-. 3. We come to basic facts first. The assessee company manufactures cassia and guar gum powder. It provided above marking support ser....

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....he impugned adjustment. This panel upheld Assessing Officer's action in its order dated 25.09.2012 except to the extent that it would direct the Assessing Officer to exclude M/s. Moldtek having abnormal results. The Assessing Officer accordingly framed the impugned assessment re-computing the above transfer pricing adjustment of Rs. 73,43,657/- in question leaving the assessee aggrieved. 5. We have heard both the parties. Case file perused. The assessee's first argument in the course of hearing is that the authorities below have erred in rejecting its transfer pricing study thereby undertaking a fresh selection process of comparables having data of the relevant financial year 2007-08. It however fails to dispute that its original compara....

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.... taken as a valid comparable. We rely on the very reasoning herein as well in absence of any distinction on facts being pointed out and direct the Assessing Officer to exclude M/s. Coral Hubs Ltd. from the above comparables and finalize afresh computation. 8. We now come to M/s. Accentia Technoligies Ltd. Learned counsel representing assessee pleads that the said entity had seen merger of two units during the relevant financial year having impact on its margins. We find that a co-ordinate bench of this tribunal in Symphony Marketing Solutions India Pvt. Ltd. case ITA No.1316/Banglore/2012 decided on 14.08.2013 excludes this entity for the impugned assessment year itself on the ground that above extraordinary events of merger had an impac....