2024 (4) TMI 141

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.... 1. Respondent-assessee was in the business of rendering research and technical services. The return of income was filed on 24th September 2009 for A.Y.-2008-09 declaring total income at Rs. Nil. The return of income was duly processed under Section 143(1) of the Income Tax Act, 1961 (the Act). The case was selected for assessment and order under Section 143(3) of the Act was issued and served o....

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.... of the Assessing Officer to the extent of addition on account of international transaction amounting to Rs. 3,59,81,523/-. This also was unacceptable to assessee, who preferred the appeal before the Income Tax Appellate Tribunal (ITAT) against the order dated 11th September 2013 passed by the CIT(A). 3. The ITAT vide order dated 8th July 2016 partly allowed the appeal filed by assessee by refe....

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....(iii) of IT Rules 1962, which allows such adjustments only while computing net margins of the uncontrolled transactions (comparable companies) when TNMM is chosen as the most appropriate method to determine Arm's length price.? b) Whether on the facts and in circumstances of the case and in law the Hon'ble ITAT was correct in directing to make appropriate capacity utilization adju....

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.... of 3 comparables selected by assessee were sent for bench marking. Assessee raised various objections to the proposed comparison and the main ground of objection was that assessee had started production only in the month of May 2007 and the sales have started only from the month of July 2007. Whereas, the comparables were in the business for many years. This objection was rejected by the TPO. The....