TaxTMI 
TaxTMI 
2023 (8) TMI 210
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....sed the following substantive grounds of appeal :- "1. That on the facts and in the circumstances of the case and in law, the reference made by the Assessing Officer (' Ld. AO') to the Transfer Pricing Officer (' Ld. TPO') under section 92CA of the Act suffers from jurisdictional error as the Ld. AO has not recorded any reasons in the order passed based on which, the conclusion that it was "expedient and necessary" to refer the matter to the Ld. TPO for computation of arm's length price ("ALP") was reached, as is required under section 92CA (1) of the Act. 2. The Ld. C!T(A) / Ld. TPO erred on facts and circumstances of the case in determining the arm's length price adjustment to the Appellant's ....
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....engaged in the business of providing broad range of design Powertra in development and testing services to it's AE's and non AE's as well. The matter was referred to TPO for the subject year wherein all the International transactions were accepted to be Arm's Length except the transaction of purchase of fixed assets. The assessee had purchased fixed assets amounting to Rs. 6,54,03,283/- in the year under consideration from its Associate Enterprises to carry out its business operation in India. The same was bench marked in the TP Study by aggregating other intentional transactions using TNMM as MAM. The said fixed assets were manufactured by the A.E in-house and was purchased by the assessee at manufacturing cost plus 5% mark up. The TPO ben....
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....rom the record. The assessee aggrieved by the order of the CIT(A) dated 22/03/2018 has preferred the present appeal on the grounds mentioned above. The Ld. Counsel for the assessee submitted that the Ground No. 1 is general in nature and the same is not been pressed. 5. Ground No. 2 & 3 of the Assessee's Appeal is regarding TP Adjustment being disallowed of 5% marked up in relation to purchase of certain fixed assets (i.e. Smoke Meter and Heating Channel) and a non consideration of evidence in respect of the same. The Ld. counsel for the assessee submitted that the CIT (A) has relied upon the remand report of the TPO without appreciating that TPO therein in relation to 'Smoke Meter and Heating Channel', looked only at A.E and the third p....
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....ng the same bench marking approach of internal CUP as accepted for other assets. The Ld. Counsel for the assessee has also submitted that in Assessee's own case for Assessment Year 2011-12, the Revenue Authorities have accepted the purchase of all fixed assets including heating channel and in Assessment Year 2011-12 CIT(A)/TPO accepted the purchase of all fixed assets including both 'heating channel' and 'smoke meter' at to be ALP. Thus submitted that the present appeal is deserves to be allowed. 7. On the other hand, the Ld. DR submitted that it is the specific case of the assessee is that the invoices produced by the assessee has not been considered in right perspective, therefore the matter may be remanded to the file of A.O. to verif....