TaxTMI 
TaxTMI 
2024 (3) TMI 1068
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....facts and circumstances of the case and in law, the Ld. AO under Section 143(3) read with section 144C(13) and 144B of the Act is bad in law and liable to be quashed to the extent it confirms the additions/disallowances made in the assessment order. 2. That on the facts and circumstances of the case and in law, the Ld. AO/ Learned Transfer Pricing Officer ("Ld. TPO") have erred in confirming the action to assess the income of the Appellant at INR 58,33,20,850 as against INR 9,67,29,650 declared by the Appellant in its Return of Income ("ROI") for AY 2018-19. 3. That on the facts and circumstances of the case and in law, the Ld. AO/Ld. TPO have erred in enhancing the income of the Appellant by INR 48,63,44,380/- pertaining ....
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.... TNMM as the most appropriate method for benchmarking the Appellant's international transactions pertaining to purchase of traded goods, and in doing so, have grossly erred in: 4.1. conducting a fresh comparability analysis based on the application of additional/ modified filters in determining the arm's length price of purchase of traded goods and rejecting the filters applied by the Appellant in the corroborative analysis used in the TP documentation; 4.2. rejecting the comparables selected by the Appellant engaged in trading activities and selecting the companies which are engaged in manufacturing activities, thereby disregarding the fact that the Appellant is a trader and not a manufacturer; 4.3. apply....
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....n Agri International Holding Pte Ltd. 5. The assessee is engaged in the trading of vegetable oils, specifically palm oil and derives 100% of its income from trading in goods. 6. The summary of economic analysis of international transactions during the year can be understood from the following chart :- Name of Transaction Name of AE Amount (INR) Method Purchase of traded goods Golden Agri International Pte Ltd. Integrated Advance IT Services Sdn Bhd 729,42,85,461 Other Method Corroborative Approach: Transactional Net Margin Method ("TNMM") Service fee 1,71,75,076 TNMM Remittances for OTC transactions 3,51,89,100 Othe....
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.... 2. Kaleesuwari Refinery Pvt. Ltd. 3. 3 F Industries Ltd. 4. Bansal Oil Mill Ltd. 5. KPL Oil Mills Pvt. Ltd. 6. RSH Agro Products Ltd. 7. Mahesh Edible Oil 8. Agro Tech Foods Ltd. 10. At the very outset we are of the considered view that the comparables used by the TPO are not at all comparable on functional dissimilarity. 11. The assessee is engaged in trading of edible oils whereas all the comparables mentioned here in above are in manufacturing of edible/ non edible oils. 12. Rule 10D(3) reads as under ;- (3) The information specified in [sub-rules )(1) and (2A)] shall be supported by authentic documents, which may include the following : (a) official publi....
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....essee. 14. We have given a thoughtful consideration to the orders of the TPO we are of the considered view that the TPO has failed to analyze the TP documentation prepared by the assessee. We find that the assessee has appropriately compared the prices of third party brokerage houses / associations/ exchanges where ever available during the time of preparation of the TP documentation. 15. We find that the assessee has considered all the market quotations available while maintaining the transfer pricing report and considering the contemporaneous nature of documentation process as provided under the relevant provision of the Act. 16. In our considered opinion if any third party rate is not considered for a particular date of contract....