TaxTMI 
TaxTMI 
2019 (12) TMI 374
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....appeals, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. A.Y. 2010-11 : 2. Firstly, we take up the cross appeals directed against the final assessment order dated 27-02-2015 passed by the Assessing Officer (AO) u/s.143(3) r.w.s.144C(13) of the Income-tax Act, 1961 (hereinafter called 'the Act') in relation to the assessment year 2010-11. 3. Briefly stated, the facts of the case are that the assessee filed its return declaring loss of Rs. 1,18,56,169/-. Certain international transactions were reported in Form No.3CEB. The Assessing Officer (AO) made a reference to the Transfer Pricing Officer (TPO) for determining the Arm's Length price (ALP) of the international transactions. The ....
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....d and admitted that the facts and circumstances are similar. This issue is, therefore, decided against the assessee. 5. The second issue about the adjustment not exceeding the income earned by the Associated Enterprises from supply of raw materials was not pressed, which is dismissed as not pressed. 6. The third issue about the exclusion of comparables selected by the TPO was also not pressed, which is again dismissed as not pressed. 7. Another issue which survives for consideration is the challenge to the adjustment on account of depreciation towards difference in rates. The ld. AR submitted that similar issue also came up before the Tribunal in its order for the assessment year 2009-10. By inviting our attention towards page 23 para 20....
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....gh Court in CIT vs. Thyssen Krupp Industries India Private Ltd. (2016) 381 ITR 413 (Bom), the Tribunal has directed that the transfer pricing addition should be restricted to the transactions with AEs and not the unrelated or non-AEs. Following the same view, we allow this additional ground of appeal and direct the AO/TPO to restrict the transfer pricing addition only qua the international transactions and not the entity level transactions. 10. The transfer pricing addition made in the final assessment order pertaining to receipt of sales commission amounting to Rs. 67,08,036/- was not pressed by the ld. AR. The same is hereby dismissed. 11. Now we turn to the last transfer pricing addition amounting to Rs. 77,76,390/- made by the AO in t....
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....in additional quantitative/qualitative filters was not pressed by the ld. AR, which is hereby dismissed. 16. The issue of disregarding the fresh search provided by the assessee was also not pressed by the ld. AR, which is hereby dismissed. 17. The issues of non-granting of risk adjustment and considering multiple year data were also not pressed by the ld. AR, which are again dismissed. 18. The only issue which survives for consideration in this international transaction is challenge to the inclusion of Coral Hub Ltd. (earlier known as Vishal Information Technologies Ltd.). 19. Before analyzing as to whether Coral Hub Ltd. is comparable or not, it is relevant to consider the nature of activity done by the assessee in this international t....
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....ogies for the new design to be developed for the specified component, procedure for the customers of the existing design of the component, procedure for analyzing the proposed design etc. The work carried on in India primarily relates to drafting/modeling of designs. Thereafter, the processing of the job is done. 20. The TPO proposed the inclusion of Coral Hub Ltd. (Vishal Information Technologies Ltd.) which was objected to by the assessee on the ground that it was functionally different with the different business model and different financial year. The TPO rejected the assessee's contention for its inclusion in the list of comparables, which was echoed by the DRP. 21. Having heard both the sides and perused the relevant material on rec....
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....all pending appeals. Not only that, it has further been directed to the competent authorities to withdraw all such appeals on or before 31-10-2019. The ld. DR fairly conceded to the same. We, therefore, dismiss the appeal filed by the Revenue as not maintainable because of low tax effect. 24. In the result, the appeal of the assessee is partly allowed for statistical purposes and that of the Revenue is dismissed. A.Y. 2011-12 : 25. In this appeal, the assessee is aggrieved by the transfer pricing addition amounting to Rs. 6,91,37,958/- made in the international transaction of Import of raw materials. 26. The issue concerning taking Foreign /Associated Enterprise as a tested party was conceded to be similar to the earlier years, which ha....