2019 (3) TMI 738

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.... for the Assessment Year 2009-10. 2. The only grievance raised by the learned counsel for the Assessee is that while remanding the case back to the Transfer Pricing Officer, the Income Tax Appellate Tribunal should not have made observations on the merits of the Transfer Pricing adjustment which has to be considered by the Transfer Pricing Officer upon such remand. 3. The learned counsel for the Assessee, Mr.Vikram Viayaraghavan, has, however, vehemently submitted that on the same material and evidence were available before the Transfer Pricing Officer in the first round of litigation itself and he had taken a particular stand in the matter and therefore, the Tribunal has made such impugned observation while remanding the case back to....

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....stment against the custom duty component while determining the ALP. 7. The next additional ground is with regard to air freight charges adjustment while computing the ALP. In our opinion, the assessee is in the field of manufacturing and testing of throttle body, rocker arm, solenoid valve, LPG gas mixer, vaporizer, LPG Tank etc. and the assessee has to transport the raw materials very urgently to meet the end of the customers. The assessee is importing the entire various components which is required to manufacture its final products. In the course, it incurred air freight charges, which is abnormal expenses and adjustments to be made while determining the ALP, as it is affecting the operating profits. The plea of the asse....

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....nents, i.e. customs duty adjustment, air freight adjustment and foreign exchange fluctuation adjustment." (emphasis supplied) 6. From the above, it is clear that though the issue relating to Customs Duty Adjustment, Air Freight Adjustment and Foreign Exchange Adjustment were directed to be reconsidered by the Transfer Pricing Officer for determining the Arms Length Price (ALP) in the case of the Assessee, the Tribunal has, in fact, fixed how such adjustments have to be made or not to be made. This hardly leaves any discretion to deal with these issues afresh with the Transfer Pricing Officer, since the Transfer Pricing Officer, being the lower Authority, would be bound by the observations and findings of the Tribunal. 7. This, in our ....