2016 (11) TMI 1628

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....d in manufacture of engineering goods mainly transmission couplings, filed its return of income on 21.09.2011 declaring total income of Rs. 38,30,77,870. During the assessment proceedings u/s 143(3) of the Act, the AO noticed that the assessee filed a report in Form No.3 CEB only on 27.03.2013 though it was to be filed along with the return of income. He observed that the assessee has entered into international transactions in the form of sales to AE and payment of royalty. He went through the T.P. study made by the assessee and observed that the assessee has followed the CUP method for both sale of goods as well as royalty. He observed that though the assessee stated that the margin of the assessee was within 5% of the margin of the compar....

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....propriate method in its TP study, he declined to change the method. However, he directed the exclusion of certain companies from the final list of comparables. Against this finding of the CIT (A) the Revenue is in appeal and in confirming the method and the consequent ALP adjustment, the assessee is in appeal before us. 4. The learned Counsel for the assessee has drawn our attention to the submissions made by the assessee before the CIT (A) wherein all the differences in products such as the market conditions, geographical features etc., have been brought to the notice of the CIT (A) and the observations of the CIT (A) wherein he has agreed that the method adopted by the assessee is not the most appropriate method. Therefore, according t....