2018 (9) TMI 138

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....ered Accountants for filing the appeal and the appeal papers could not be filed in time due to intervening holidays. The Learned AR reiterated the submissions made in the affidavit and also submitted that the appeal fee was, however, paid by the assessee within the due date. Accordingly he prayed that the marginal delay in filing the appeal may be condoned. 3. We have heard learned DR on this preliminary issue. Having regard to the submissions made in the affidavit filed by the assessee as well as submissions made by learned AR, we are of the view that there is reasonable cause for filing the appeal belatedly. Accordingly, we condone the delay and admit the appeal for hearing. 4. The assessee is contesting the transfer pricing adjustment ....

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.... length price by adopting operative profit/operative cost and also without considering the following adjustments requested by the assessee: (a) adjustment for startup phase of operation. (b) adjustment for abnormal expenses. The Learned AR further submitted that the assessee has given segmental results also for both the activities. Accordingly, he contended that the adjustment sought by the assessee should be directed to be given. 8. On the contrary, the learned DR submitted that Rule 10B(1)(b) of the I.T. Act relating to resale price method and Rule 10B(1)(c) relating to cost plus method do not provide for adjustment as sought by the assessee. Learned DR further submitted that the assessee has paid huge management fees to its associa....

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.... the assessee company has stated its operation in the year 2006 and accordingly, it has got about four years of experience in this field. Before us also, the assessee could not provide any material to show that it is continue to face the difficulties peculiar to the start up phase. There should not be any doubt that the responsibility to substantiate the claim put forth lies upon of the assessee. Accordingly we are of the view that the tax authorities are justified in rejecting this claim of the assessee. 11. With regard to adjustment claimed towards abnormal items, we have already held that the same is required to be considered on merits. Accordingly this claim of the assessee requires examination at the end of the Assessing Officer/TPO. ....