TaxTMI 
TaxTMI 
2024 (12) TMI 483
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....inst four separate orders of the ld. CIT(A)-55, Mumbai, dt. 31/01/2024 pertaining to Assessment Years 2013-14, 2014-15, 2015-16 & 2016-17, respectively. 2. Since common grievance is involved in the captioned appeal, they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. The substantive grounds argued before us are as under:- "ON TRANSFER PRICING ADJUSTMENTS: 2.1. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in confirming the transfer pricing adjustment of Rs. 11,80,30,504/- under section 92CA(3) of the Act in the hands of the Appellant in respect of the international transactions entered into by it during the year ended 31, March....
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....ffirmed by the Ld. CIT(A) deserve to be reversed and deleted in toto being contrary to the extant law. ON OTHER DISALLOWANCES: 3.1 In the facts and circumstances of the case and in law the Ld. CIT(A) erred in confirming the disallowance of Rs. 2,08,825/- u/s 40A(a) of the Act being cash payments made in excess of Rs. 20000/- being payments made to Agents for clearance of goods from the port without appreciating that the same were made out of business compulsions and therefore no disallowance was at all called for on the same. 4. The appellant craves leave to add, amend, alter, delete or modify, all or any of the foregoing grounds of appeal, if an when necessary." 4. Representatives of both the sides were heard ....
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....ed party to justify the ALP under TNMM. 8. The assessee selected the following three comparable companies:- Sr. No. Name of the Company OP/OC(%) 1 Circuit Systems (India) Limited -0.08% 2 Incap Ltd. 6.12.% 3. Toyama Electric 6.7 Average 4.26% 9. The margin of the assessee as per the TPSR is computed as under:- Particulars Amount (Rs) Operating Income A Export Sales 2,140,087,822 Sale of Scrap generated from manufacturing process 4,113,401 Foreign Exchange Gain A 2,144,201,223 Operating Cost B 2,083,959,915 Operating Profit C=(A-B) 60,241,308 OP/TC *100 (i.e., th....
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..... Aplab Limited An Electronic good manufacturing company Sr. No. Name of the Company OP/OC (%) 1 Fine Line Circuits Ltd. 0.98% 2 Cosmos Ferrite Ltd. -0.95% 3 Aplab Limited 4.36% Average 1.46% 12. The TPO once again analyzed the comparable selected by the assessee and rejected Circuit Systems (India) Ltd., stating that it is not functionally comparable and rejected Incap Ltd. & Toyoma Electric, as they have nil exports. He further rejected Fine Line Circuits Ltd. stating that it is not functionally comparable and rejected Cosmos Ferrite Ltd. & Aplab Limited, as not comparables for having exports less than 75% of sales. Though, the TPO accepted that Toyoma Electric & Aplab....
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....D= (C/B) 2.92% Arm's Length Margin(%) E 8.59% Arm's Length Profit F=E*B 178,953,592 Variation from Actual Profit G=F-C 118,030,504 3% of International Transactions 3%*3,388,997,609 101,669,928 Adjustment G 118,030,504 14. Accordingly, adjustment of Rs. 11,80,30,504/- was made which was upheld by the ld. CIT(A). 15. We have given a thoughtful consideration to the orders of the authorities below. The entire quarrel revolves around, whether the comparable selected by the TPO are in the same line of business as that of the assessee. 16. A certificate by a chartered engineer certifies that switch mode power supply (SMPS) is an electronic product and not an electrical product as electrical ....