2018 (6) TMI 541

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....der section 143 (3) read with section 144C of the Income-tax Act, 1961 (for short 'the Act') qua the assessment year 2009-10 on the grounds inter alia that :- "1. The Ld. AO erred in assessing the income of the appellant at Rs. 30,75,37,020/- as against the returned income declared by the appellant at Rs. 16,08,18,590/-. 2. The Ld. AO/ Ld. Transfer Pricing Officer ('TPO') has grossly erred on facts and in law in enhancing the income of the appellant by Rs. 6,91,66,692 on account of incorrectly characterising the appellant as a technical consultancy service provider without taking cognizance of the fact that there has been no change in the facts and circumstances of the business of the appellant from the immediately....

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....Rs. 7,75,51,735 for the period of delay in realization of receivables - 4.1 disregarding the fact that the Ld. DRP had allowed working capital adjustment and thereby had already taken cognizance of the differences in working capital (including receivables) of the appellant vis-a-vis the com parables and hence, a separate adjustment on receivables was not warranted. 4.2 without prejudice to the above sub-ground, the Ld. AO/ Ld. TPO calculated the adjustment on the opening balance of receivables for the entire year (minus 30 days payment period allowed as per service agreement) without considering the actual ageing of the receivables; 4.3 arbitrarily applying an interest at the rate of 15.77% on the alleged delay in....

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....munication and information interface for the commercial airplane market in India. The taxpayer team is also engaged in Integrated Defence System segment, Boeing Military Aircraft Segment, Network & Space Systems, Global Services & Support and Boeing Capital Corporation. 4. The taxpayer stated in its TP documentation that it provides intra-group supporting service involving analysis and verification of product design, performance of adequacy and reliability, planning and research and development programs, on-site representation and technical support to the customer, participation in technical reviews and application of expertise in the definition of new design and procedures and other assistance to meet customers need. 5. Assessee in o....

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....sent appeal. 8. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 9. Undisputedly, after the directions issued by the ld. DRP, 10 comparables have been taken up to arrive at the figure of mark-up earned by the comparable company in order to benchmark the international transaction which are extracted as under :- Sl. No. Name of the Company Adjusted OP/TC (%) 1. Alphageo (India) Ltd. 19.11% 2. Certification Engineers International Ltd. ('CEIL') 95.07% 3. Cethar Consulting Engineers Ltd. 27.49% 4. Lurgi India Pvt. Ltd. 8....

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....60,331 4,14,60,331 7-Mar-11 706 365 65,38,294 Total   5,57,72,026   11. Assessment order passed by the AO goes to prove that he has not carried out the directions issued by the ld. DRP, so we direct AO to compute on interest receivables in accordance with the directions issued by the ld. DRP. 12. Ld. AR for the assessee in order to cut short the controversy has challenged the findings returned by the TPO/DRP/AO to the extent that only three comparables viz. Certification Engineers International Ltd., Wapcos Ltd and NTPC Electric Supply Co. Ltd., which are Government companies being not valid comparables vis-à-vis assessee to benchmark the international transacti....