TaxTMI 
TaxTMI 
2021 (3) TMI 644
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....sed the following grounds of appeal: Transfer Pricing Issues 1. The leamed Assessing Officer ('learned AO'), learned Transfer Pricing Officer ('learned TPO') and the Honourable Dispute Resolution Panel ('Hon'ble DRP') grossly erred in determining an adjustment of INR 22,62,93,193/- with respect to the international transaction entered into by the taxpayer in the certification segment u/s 92CA of the Income-tax Act, 1961. 2. The learned AO/ learned TPO/ Hon 'ble DRP erred in rejecting the TP documentation maintained by the Appellant by invoking provisions of sub-section (3) of 92C of the Act. 3. The learned AO/ learned TPO/ Hon'ble I)RP erred in rejecting comparability analysi....
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.... increase in the quantum Of transfer pricing adjustment which would be in itself greater than the total quantum of expenses incurred. This would need to be rectified. 10. The learned AO/ learned TPO/ Hon'ble DRP has erred in disregarding the economic adjustments made by the Appellant to the net operating margin on account of extraordinary and non-recurring expenses incurred during the financial year 2012-13. 11. The learned AO/ learned TPO/ Hon'ble DRP erred in not allowing working capital adjustment in the certification segment. 12. The learned AO/ learned TPO/ Hon'ble DRP erred in accepting Certification Engineers International Ltd as a comparable even when its business is not comparable to that of t....
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.... are concerned, the threshold limit for application of RPT filter for excluding comparable companies, should be 15% of the total revenue being with related parties and in this regard placed reliance on the decision rendered in 24/7 Customer Pvt. Ltd. (ITA No.227/Bang/2010), Sony India Private Ltd. reported in (2009) 315 ITR (80) 150 (Del.) wherein it has been held that comparables having RPT of up to 15% of total revenues can be considered as comparable company. Fourthly, it was submitted that the adjustment and addition to the total income should be made u/s. 92 of the Act only in respect of international transaction and not in respect of transactions with Non-AE. In this regard, the ld. counsel pointed out that out of the total revenue fr....
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....ation received from the AE for rendering the certification services should also be examined by the TPO. (3) Errors, if any, in the computation of margins of comparables should be looked into by the TPO in the set aside proceedings. (4) Threshold limit for applying RPT filter should be 15% or 25% of sales depending upon the availability of comparable companies after all exclusions as held by the Tribunal in the case of Auto Desk India Pvt. Ltd. Vs. DCIT [2018] 96 taxmann.com 263 (Bang.Trib.) [para 24 to 25]. 17. The above directions will be sufficient to take care of the grievances projected by the assessee in ground Nos. 5 & 6 and additional grounds No.6 (d), 26 & 27. The TPO will afford opportunity of being heard....
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....n the method of revenue recognition and brought to tax an additional amount in AY 12-13, has erred in not giving consequent relief (on a protective basis) for the amount offered to tax by the Appellant in AY 13-14. 6. Notwithstanding and without prejudice to the above, for the amount considered as revenue of the current year, the learned AO ought to allow consequential benefit in the subsequent years in which the same has been offered to tax. 5. We have heard both the parties. The issue relating to the action of the revenue authorities in not recognizing income by changing the method of accounting from proportionate computation method to complete contract method. 6. After hearing both the parties, this issue came up for consi....
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.... which is to the effect that if the income recognition which is postponed in this year is considered as revenue for the current year, then the AO should allow consequential benefit in the subsequent year in which the same income has been offered to tax, we are of the view that the Assessee is at liberty to pursue remedies available to it in law and the AO shall consider the same in accordance with law and in the light of the findings as above." 6.1 By taking a consistent view, this ground is decided against the assessee. 7. The next ground is with regard to denial of TDS Credit : 1. The learned AO has erred in neither granting TDS credit as per reconciliation submitted by the Appellant nor as per Form 26AS. 2. Notwit....