TaxTMI 
TaxTMI 
2020 (8) TMI 892
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.... Panel (DRP)-I, Mumbai. 2. The subject matter of challenge in the present appeal in sum and substance is, comparability of a single comparable viz. Axis Integrated Systems Ltd. 3. Facts necessary for disposal of this issue are, the assessee, a resident company, is engaged in the business of marketing of nutrition and health care products of DSM Group which is its Associated Enterprise (AE). In the year under consideration, the assessee entered into various international transactions with its AE, such as purchase of goods for distribution, provision of marketing support service, payment for e-connectivity charges, sale of finished goods, purchase of capital goods, reimbursement of expenditure and recovery of expenses. However, in the facts....
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....sessee. Thus, in total, the Transfer Pricing Officer finally selected five comparables with weighted average of 17.95%. Since, the margin shown by the assessee was not within +/-3% of the average weighted margin of the comparables, the Transfer Pricing Officer proposed an adjustment of Rs. 42,63,879. In terms with the adjustment proposed by the Transfer Pricing Officer, the Assessing Officer framed the draft assessment order. While considering assessee's objection against the draft assessment order, learned DRP partly accepting assessee's claim directed the Transfer Pricing Officer to exclude BVG India Ltd. In view of such direction of learned DRP, the adjustment was reduced to Rs. 38,43,195. 4. Objecting to selection of Axis Integrated Sy....
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....pecifically drew our attention to the observations of learned DRP at Para-4.2.6. of their order. 6. We have considered rival submissions and perused the material on record. On going through the financial statements of the disputed company, a copy of which is placed at Page-326 of the paper book, it is noticed that the company is engaged in the business of trading in digital signature, consultancy and providing liasioning services. Though, the Revenue's stand is that the consultancy and liasioning service segment is comparable to the assessee, however, on deeper scrutiny, we find that such consultancy and liasioning services provided by this company is in relation to foreign trade, customs, excise and GST related matters. Further, the compa....