TaxTMI 
TaxTMI 
2020 (12) TMI 551
X X X X Extracts X X X X
X X X X Extracts X X X X
....e findings of the Transfer Pricing Officer u/s. 92CA(3) of the Income Tax Act, 1961 which followed the direction of the DRP for assessment year 2009-10, 2011-12 & 2012-13 respectively. 2. The assessee, Cookson India Pvt. Ltd., is part of the Electronics division of Cookson Group, and is a 100% subsidiary of Cookson Group PIc, UK. It is engaged in the manufacture and supply of materials to the electronics industry, primarily serving fabricators and assemblers of PCBs, assemblers of semiconductor packaging and the electrical and industrial markets. It has its manufacturing facility at Chennai, and a R & D centre in Bangalore. The R&D centre is a 100% EOU and provides contract R&D services to Cookson Group PIc. During the assessment year 2009....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(APA) dated 17.01.2020 with the Central Board of Direct Taxes (CBDT) for five years i.e. F.Y. 01.04.2015 to 31.03.2020. The appellant also filed for rollback period and the agreement also provides for roll back of the said APA for three previous year i.e. FY 2012-13 to 2014-15. Copy of the agreement is annexed with the Paper Book filed before us. As per the APA, for management fees for IGS is the amount of management charges paid in the manufacturing segment does not exceed 2.95% of operating revenue of the manufacturing segment of the previous year. Similarly computation of revenue of contract R & D segment, shall be the revenue arrived at by considering the mark up of 19.90% on the operating cost of this segment excluding the management c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ld. D.R relied upon the order passed by the authorities below. He argued that ALP depends on facts and that economic circumstances vary year after year and hence it cannot be said that the facts are the same. On a quarry from the Bench he failed to point out the difference in factual matrix in the case for all these three years as compared to the years where APA was applicable as per the agreement, which could lead to determination of a different ALP. According to him, Advance Pricing Agreement is a contractual agreement which is specific to a party and that the benefit can be extended only for the period of agreement. However, he has failed to cite any judgment taking a contrary view than that of the ratio laid down in the judgment cited b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vt. Ltd. in ITA No. 564/Kol/2014 wherein it was held as under: "7.1 Applying the proposition laid down in these case laws to the facts of our case and as the ALP determined by the assessee had apparent profit mark up of 18.88% in its SDS scheme and as this is within the margin laid down in the APA, this is to be considered as at arm's length price. Hence, no adjustment is warranted." Further the order passed by the Hon'ble Delhi Tribunal in Ranbaxy Laboratories Ltd. (supra) has also been considered by us. The relevant paragraph is reproduced as under: "28. .........May that be the case, but the concept and the methodology laid down in APA can have the guidance value for the revenue authorities for the purposes of comparability ....