TaxTMI 
TaxTMI 
2022 (5) TMI 1408
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....nternational transaction of the assessee by using customs data, ignoring the widely accepted principle that the customs valuation cannot be indiscriminately used for the purpose of determining the Arm's Length Price under the Income Tax Act as the purpose and criteria governing the customs valuation are different and, therefore, it does not relieve the taxpayer's burden of establishing that the price is at Arm's Length for the purpose of Transfer Pricing requirements under the Income Tax Act ('the Act'). a. Ld. CIT(A) has filed to appreciate that the customs rates are minimum presumptive rates prescribed for a class of goods to check evasion of duty, without going into the exact specifications of a particular input, within that class of g....
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.... 21.03.2016 proposing Transfer Pricing adjustment amounting to Rs.6,90,08,437/- but later on the TPO vide his order dated 30.03.2016 passed u/s 154 reduced the amount of TP adjustment to Rs.3,94,33,122/- as there were some arithmetical mistakes in the earlier order passed by the TPO. Ld. DR submitted that the assessee before the Transfer Pricing Officer (in short 'TPO') submitted that MOPAG prices used as comparables are spot prices i.e. payment on delivery, whereas assessee had availed credit from its AE. Therefore, it is submitted that the assessee had increased MOPAG prices with the financial cost for the credit period enjoyed by the assessee and the financial cost was computed on the basis of actual credit period availed by the assessee....
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....lied on the decision of the Chennai Bench of Tribunal in the case of Coastal Energy Pvt. Ltd. Vs. ACIT (2011) 12 taxmann.com 355. The Ld. CIT(A) following this decision directed the TPO to benchmark the international transaction for the purchase of fuel oil/HSD by the assessee by using customs data. 5. In ground no. 2 of grounds of appeal the Revenue challenged the order of the Ld. CIT(A) in directing the AO/TPO to allow adjustment in respect of credit period. In view of the submissions of the assessee that TPO has accepted the assessee's claim for such adjustment in succeeding year i.e. 2013-14 the Ld. CIT(A) directed the AO/TPO to allow adjustment for credit period. It is the case of the Revenue that no such claim was accepted by the TPO....
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....peals) as the Ld. CIT(A) observed that the Chennai Bench of the Tribunal in the case of Coastal Energy Pvt. Ltd. Vs. ACIT (supra) held that the valuation was made by custom authorities by assigning values to import goods on the basis of scientifically formulated methods as they were responsible for making fair assessment value of the imported goods according to internationally accepted protocols. Therefore, we see no infirmity in the order of the Ld. CIT(A) on this issue. Ground no. 1 of the Revenue is rejected. 8. We also sustain the order of the Ld. CIT(Appeals) in directing to consider entire set of transactions as has been done in the impugned order of the TPO dated 30.01.2016 since the scope of rectification u/s 154 by the TPO is very....