TaxTMI 
TaxTMI 
2024 (3) TMI 1068
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....on 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 to the purchase of traded goods that allegedly do not satisfy the arm's length principle envisaged under ....
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....ng 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. applying inappropriate filters like export earning filter, service income filter and employee cost filter in the fresh comparability analysis without appreciating that the Appel....
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....s 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 Other Method Corroborative Approach : TNMM Trade Receivables 2,24,66,448 Other Method Trade payables 102,29,65,945 Other Method IT related services 2,18,24,913 TNMM Payables 1,25,81,158 Other Method 7. The assessee in its TPSR has mentioned that it i....
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....arable 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 publications, reports, studies and data bases from the Government of the country of residence of the associated enterprises, or of any other country ; (b) reports of market research studies carried out and technical publications brought out by institutions of national or international rupte; (c) price publications including stock exchange and commodity market quot....
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....see 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 due to non availability of the data would not give right to the TPO to reject the method adopted by the assessee. We find that the assessee has considered the rates based on the average of available third party market quotations of Murgi Meghan, Sunvin Group, Malaysian Palm Oil and Solvent Extractors and not specifically to any single broker rate. 17. In our understanding of the law, the objective of applying of any ....