2019 (1) TMI 884

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.... "1. On the facts and in the circumstances of the case and in law, the Ld. Transfer Pricing Officer (Ld. TPO), while giving effect to the directions of the Ld. DRP, erred in making a total adjustment of Rs. 7,98,50,850 to the Appellant's international transactions of sale of AK Kits and components, purchase of components, tools and accessories, purchase of compressors and sale of compressors. International transaction of Sale of AK Kits and Components: 2. On the facts and in the circumstances of the case and in law, the Ld. TPO erred in making an adjustment of Rs. 2,72,53,775 to the Appellants' international transaction of Sale of AK Kits and components to its AE. 3. While benchmarking the aforesaid intern....

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....ale of compressors as used for benchmarking the international transaction of sale of AK Kits and Components". 2. Brief facts of the case are that assesseecompany, deriving income from Manufacturing and Sale of Air- Conditioner and Refrigerator Compressors, filed its return of income for the AY. 2010-11, declaring total loss of Rs. 11,67,68,784/-. During the assessment proceedings u/s. 143(3) of the Act, Assessing Officer observed that assessee has entered into international transactions with its Associated Enterprise [AE] and determination of the Arm's Length Price [ALP] of the international transaction was referred to the Transfer Pricing Officer [TPO] u/s. 92CA of the Act. The TPO observed that the assessee-company manufactures compres....

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....n adjustment of Rs. 5,80,01,717/-. Accordingly, draft assessment order was proposed by the Assessing Officer, against which assessee preferred its objections to the Dispute Resolution Panel [DRP]. One of the objections taken by assessee to the DRP was that the TPO was not correct in ignoring that there are two different activities undertaken by the assessee and that assessee is maintaining separate books of account for the EOU unit and in not considering the segmental results reported in the financial statements. It was contended that the TPO has erroneously computed the operating cost on a proportionate basis, which is incorrect. The DRP by following the decision of the Co-ordinate Bench of the ITAT in assessee's own case for the AY. 2007-....