2023 (8) TMI 79

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....3(3) r.w.s. 254 r.w.s. 144B of the Income Tax Act, 1961 (for short "the Act") assessee filed this appeal. 2. Briefly stated relevant facts are that the assessee is engaged in the business of Software Development Services & Unified Data Storage Solutions, e-filed its original return of income for the assessment year 2012-13 on 11/10/2012 admitting total income of Rs. 2,43,86,576/- under normal provisions after setting off of the brought forward losses of Rs. 1,26,86,715/- and Rs. 3,46,41,182/- under the provisions of section 115JB of the Act. During the course of assessment proceedings, it was observed that the assessee has entered into international transactions with its Associated Enterprises (AE) during the year. Hence, in accordance wit....

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....ssed order dated 30/03/2023, adding the TP adjustment of Rs. 1,76,77,784/-. Hence, the assessee is in appeal before us. 7. Hence the assessee is before us in this appeal, contending that when once the ITAT concluded in the first round of litigation that the business of the assessee is merely that of a pure distributor, then it is, but natural to conclude that the Resale Price Method (RPM) is the most appropriate method but the authorities below failed to appreciate the fact that the assessee got the goods it sold in the Indian market were provided to the assessee by the parent company at free of cost and the assessee was earning the maximum gross margin after incurring certain expenditure. Assessee further contended that in such situation,....

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.... observed that as per 10B(1)(b) of the Act, RPM could be applied where the property or service purchased from AE are resold to an unrelated enterprise. He, therefore, submits that the Co-ordinate Bench of this Tribunal recorded its findings on the premise that there was purchase of products from the AE and then such products were resold to an unrelated enterprise, which is not the case on hand. 10. In reply, learned AR submitted that against the directions of the learned DRP for the assessment year 2011-12 analysing the similar transactions under the very same agreement held that RPM is the most appropriate method to benchmark the transaction and determine the ALP thereof carried the matter in appeal and by order dated 18/04/2023, Co-ordin....