2022 (2) TMI 1351

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.... appeals are disposed of by way of a common order as common issues arises on identical facts. For the sake of convenience, we are reproducing the grounds raised by assessee for Assessment Year 2013-14.   Grounds of Appeal Tax effectrelating to each Ground of appeal 1. The Learned Transfer Pricing Officer (TPO) and Hon'ble Dispute Resolution Panel (DRP) erred in law and in facts in not considering TNMM documentation and benchmarking as submitted and discussed by your appellant. Rs. 13,06,36,920 2. The Learned TPO and Hon'ble DRP erred in law and on facts by not considering the segmental results of international transactions, submitted before the DRP, even though the segmental results for obtaining the ope....

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....ion with associated enterprises on the contention that profits are shifted from India to other AEs outside India though the AEs earned considerable lower margins than the holding company i.e. your appellant. 7. The Learned TPO and the Hon'ble DRP has erred on facts in considering expenditure incurred on research & development activity by your appellant for PL1 calculation, though the R&D expenditure was not linked with the manufacturing activity and same principles have not been applied in computing PLI of comparables. 8. The Learned TPO and Hon'ble DRP has erred in law and on facts in considering the "Liability written back" amounting to Rs.2,74,675/- as a non-operating income. 9. Corporate Guarantee Commission &n....

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....r, she submitted that there are internal comparables available and sufficient data were filed before the DRP which were not considered for purpose of comparability analysis. She prayed that as against the external comparables used by the Ld.AO/TPO, the internal comparables submitted by assessee may be considered in order to bench mark the international transaction for the years under consideration. She submitted that all the details are available in order to assist the revenue authorities to use the internal comparables. 3.2 In support of her submission, she placed reliance on the decision of Hon'ble Special Bench, Mumbai in case of Tecnimont ICB (P.) Ltd. vs. Addl. CIT reported in [2012] 24 taxmann.com 28 (Mum.) (TM). Referring to the s....

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.....TPO first should have recourse to such internal compares before moving on to external comparables. Only on insufficiency of data in respect of internal comparables, support must be drawn from the external comparables. 4.1 We therefore, direct the Ld.TPO to carry out detailed analysis of the international transactions using TNMM as MAM, based on the materials filed by assessee related to internal comparables. In the event the details filed are satisfactory, the determination must be confined to the internal comparables so filed by assessee. In the event, the details filed by assessee is not verifiable or not in accordance with law, the Ld.AO/TPO is open to carry out analysis in accordance with law. Ground nos. 2-4 raised by assessee s....