2023 (1) TMI 466

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat the National faceless assessment Centre has made transfer pricing adjustment of Rs. 219,00,415/- and not restricted to Rs. 44,70,673/- as directed by the learned Dispute Resolution Panel as per the remand report of the TPO dated 3rd February, 2022. 02. Assessee is a company engaged in manufacturer of quality elastic narrow fabrics in India. It filed its return of income on 28/10/2017 declaring a total income of Rs. 46,000,280/- . Case of assessee was selected for scrutiny. It was found that assessee has entered into international transaction as per form number 3CEB; therefore, reference was made to the learned transfer-pricing officer to determine the arm's-length price. 03. The learned transfer-pricing officer found that during the y....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....learned dispute resolution panel. Assessee submitted that it could not represent its case before the learned transfer-pricing officer for the certain reasons and submitted a detailed paper book wherein it submitted several documents including TP Study Report. Assessee further challenged the jurisdiction of the learned transfer-pricing officer also. It also explained its benchmarking methodology. 06. Based on this, the learned dispute resolution panel directed the learned transfer pricing officer to submit a remand report after providing an opportunity to the assessee. 07. The learned transfer-pricing officer submitted remand report on 3/2/2022. In the remand report, assessee submitted additional evidences. In the additional evidences asse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s accepted that benchmarking made by the assessee in its transfer pricing study report taking the foreign AE as a tested party is proper and addition could have been at the maximum of Rs. 4,470,673/-, the learned National faceless assessment Centre should not have repeated the adjustment made by the learned transfer pricing officer in his original order. 010. The learned departmental representative supported the order of the National faceless assessment Centre. 011. We have carefully considered the rival contention and perused the orders of the lower authorities. The fact in short shows that assessee is in receipt of royalty income of Rs. 46,695,981/- from its associated enterprises. The assessee selected the transactional net margin meth....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... enterprise as the tested party the adjustment would at best be restricted to Rs. 4,470,673/-. We find that in the transfer pricing study report available before the learned transfer-pricing officer in remand report, the learned TPO could not find any defect in the transfer pricing approach of the assessee. In fact he accepted the same in toto. However, he reiterated his transfer pricing adjustment as per his order. The learned dispute resolution panel also did not give any clear-cut finding whether the transfer pricing approach of the assessee is correct or the transfer pricing approach adopted by the learned TPO is correct. We find that when the transfer pricing study report submitted by the assessee in the remand proceedings, which asses....