TaxTMI 
TaxTMI 
2017 (8) TMI 1417
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....deleting the addition of Rs. 2,07,49,000/- made on account of adjustment of the Arm's Length Price of the international transaction on payment of royalty by assessee to its Associated Enterprise, from the income of the assessee u/s 92C? ii) Whether the Tribunal/CIT(A) was legally justified in deleting the addition of Rs. 2,07,49,000/- by holding that the Comparable Uncontrolled Price method (CUP) was not applicable?" 3. However, now issue is covered by the decision of this Court in the case of same assessee in D.B. Income Tax Appeal No. 71/2015 decided on 26th July, 2017 wherein it has been held as under:- "4. The issue is now covered by the decision of this court in Income Tax Appeal No.72/2015 (CIT Alwar Vs. M/S Sakat....
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....ering out companies which had related party transactions in excess of 25%. As per the figures available with the assessee, this company had 14.26% related party transactions as a percentage of sales (Total 99.75 crore related party transaction as against sales of Rs. 699.38 crore). India assessee has quoted the ITAT (Delhi) decision in the case of Sony India (Pvt.) Ltd. which has observed...." An entity can be taken as uncontrolled if its related party transactions do not exceed 10 to 15% of total revenue..." It was claimed by the assessee that the comparable company's related party transaction did not exceed 15% of sales, the same cannot be rejected on account of related party transactions. However, the observation regarding 10-15....
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....inters. The same was not considered by the assessee to be comparable to the printing inks manufactured by Sakata India. However, it is seen that the other companies which have been taken as comparables deal in dyes and pigments. As far as product similarity is concerned toners for laser printers, digital printers and photocopiers would be nearer to the products of the assessee. Further, this company as well as the assessee both are under the same NIC Code 24222. Hence, assessee's objection is not considered valid, and this company needs to be included as a comparable.(2) M/s Rainbow Ink & Varnish Manufacturing Co. Ltd: It was accepted by the assessee that this company is engaged in manufacture of printing ink. Hence, this is also c....
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.... "Accordingly, the Arm's Length Price of the import of raw material and spares by the assesssee from its Associated Enterprises is considered at Rs. 6,38,06,451/- as against Rs. 7,83,58,988/- declared in Form 3CEB, after making adjustment of Rs. 1,45,52,537/-/. The Assessing Officer shall add this amount (Rs.1,45,52,537/-) to the income of the assessee." 6. She further contended that tribunal has committed an error in holding against the department. 7. Counsel for the respondent Mr. Jhanwar has relied upon the decision of Bombay High Court in Commissioner of Income Tax vs. General Atlantic (P) Ltd. (2016) 384 ITR 271 (Bom) wherein it has been held as under:- "On the aforesaid analysis, the Tribunal found ....
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....f Commissioner of Income Tax-3 vs. Goldman Sachs (India) Securities (P) Ltd. (2016) 290 CTR (Bom) 236 wherein it has been held as under:- 5. (a) We found that during the subject Assessment Year, the Respondent- Assessee was providing services of Broking Services, Business Support Services and Investment advisory services to its customers. The TPO had adopted a list of comparable companies which were primarily engaged in providing services as merchant banker as comparable to determine the ALP in respect of the Investment Advisory Services rendered by it to its AEs. The companies selected by the TPO were identical to one selected in Carlyle India Advisors (P) Ltd., The aforesaid decision of the TPO in Carlyle (I) Advisors (P.) Ltd. v....