2017 (12) TMI 1622

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....essee are against the directions of Dispute Resolution Panel-2, New Delhi passed u/s. 144C(5) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") dated 26.11.2015 and 28.12.2016 for AYs 2011-12 and 2012-13 respectively. Final assessment orders were passed by JCIT, Range-11 and DCIT, Circle-11(1), Kolkata dated 27.01.2016 and 17.02.2017 u/s. 144C(13)/143(3) of the Act respectively. 2. Brief facts discernible from a perusal of the summary of TP adjustment for both the years has been provided in the table below: S. No. Nature of transaction Value of transaction Value of TP adjustment Value of transaction Value of TP adjustment     AY 2011-12 AY 2012-13 I. Sale of finished goods (f....

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....h respect to AY 2012-13, the Ld. TPO continued its previous year analysis and held the same transactions (as listed in SL. No. I to III above) to be undertaken at non-arm's length price. In addition the Ld. TPO alleged two more transactions (as entered into in AY 2012-13 only i.e. Sl. No. IV & V) to be at non-arm's length price and proposed a TP adjustment of Rs. 68.13 cr. In appeal before the Ld. DRP, the Assessee, on being correctly advised on transfer pricing principles, revised the approach to transaction-by-transaction approach for determination of arm's length price and submitted all necessary documents for their consideration (refer page 1535-2682 of part 3 of paper book). According to Ld. AR, the Ld. DRP did not take mos....

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....ection of Mahindra Hinoday and MMG India Pvt. Ltd. as comparable companies for benchmarking appellant's profitability under its Ferrite segment 8. Certified copy of financial information showing profitability earned by the appellant under its Kalyani unit (Ferrite segment) 9. Framework Service Agreement of Epcos AG with other group companies 10. Individual Service Agreement in relation to IT services of Epcos AG with other group companies 11. Sample copies of invoices raised by EPCOS AG on Epcos India and other group companies for provision of IT support services 12. Benchmarking report with respect to the transaction pertaining to payment for business support services (IT support and Export ....

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....id by assessee to each of the Sales Organizsations 26. Distributorship agreement between EPCOS India and EPCOS Sumperk 27. Cost auditor certificate showing details of capacity utilization and details of contribution earned by EPCOS, Kalyani unit from sale of ferrite for consumption to AEs for AY 11-12 and AY 12-13. 5. According to assessee, it has appointed the new law firm when the appeal was preferred before the Tribunal for A.Y 2011-12. The New Law firm after analysis of the original T. P study has advised the assessee to adopt transaction by transaction method, in place of entity level bench marking approach. According to the assessee, it should not be penalized for the error/mistake which occurred in the first plac....