2018 (10) TMI 1981

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....of Rs. 3,01,29,754/- on account of transfer pricing adjustment based on DRP and TPO's order. 2) That the order of DRP and TPO are without proper appreciation of facts and are in total disregard to past history of the appellant. 3) That the facts being identical, the DRP and TPO were not justified in rejecting the CPM method which was duly considered and accepted in the preceding year by Id.TPO and Assessing Officer. 4) (i) That the TPO has not properly allocated the costs of air charter services to AE and non-AE transactions for the purpose of computation of ALP which is a mistake apparent from record thereby rendering the alleged transfer pricing adjustment incorrect. (ii) That the TPO was not justified ....

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....ed current year data and selected the following comparables with average PLI of 4.45% and made an upward adjustment of Rs.4,48,48,531/-. Later on by passing the rectification order u/s. 154 dated 03.02.2015, it was reduced to Rs.3,14,02,024/- : S.No. Company Name OP/TC(%) 1 ACE Tours Worldwide Ltd. 3.8 2 Indo Asia Leisure Services Ltd. 4.57 3 Pearl International Tours & Travels Ltd. 10.52 4 Roomsxml Solutions Ltd. 1.21 5 Tamarind Tours Pvt. Ltd. 2.15 AVERAGE 4.45 The assessee carried the matter before the DRP by reiterating the same objections filed before the TPO which has been reproduced in the DRP order. The ld. DRP after considering the order of the lower authorities and rel....

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....vities when the goods are purchased from associated entities and there are sales effected to unrelated parties without any further processing, then, this method can be adopted. The findings of fact are based on the materials which have been produced before the Commissioner as also the Tribunal. Further, it was highlighted before the Commissioner as to cost. (ii). Racold Thermo Ltd. v. DCIT, 63 taxmann.com 215 (Pune-Trib) Undoubtedly, the doctrine of res jiidicata is not applicable to the tax proceedings, but at the same time, where there is no change in the facts in respect of a particular transaction and/or issue or proceedings, then it is the requirement of law that consistency should be maintained and the methodology ad....

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....the 'Cost plus method', it cannot be appreciated as to how the decision of the first appellate authority in accepting such a ratio as a Profit level indicator under this method can be sustained. The comparison of this ratio is alien to the Cost plus method. [Para 12.7] (iv). DCIT v. Sumi Motherson Innovative Engineering Ltd. 30 ITR(T) 367(Delhi-Trib). However the numerator, being the 'net profit margin is static or fixed. Unlike denominator, no alternatives have been provided for numerator. It remains constant with the varying denominators. It is this percentage of net profit margin derived by the assessee from its international transaction, which is compared with similar adjusted net profit margin with the same ba....