2024 (12) TMI 819

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..../s.143(3) r.w.s 144C(13) of the Income-tax Act, 1961 (hereinafter "the Act") pursuant to the directions of Ld. Dispute Resolution Panel-2, Bengaluru u/s 143(3) r.w.s 144C(1) of the Act dated 07.11.2016. 2. The grounds of appeal raised by the assessee are as under: "1. The learned TPO and the Dispute Resolution Panel erred in rejecting M/s.RRB Energy Limited as a comparable company, despite being functionally comparable to the assessee. 2. The learned TPO and the Dispute Resolution Panel erred on facts and circumstances in proposing an adjustment on account of lower margins, without appreciating the commercial/extraordinary parameters influencing the business of the Assessee. 3. The learned TPO and the Dispute R....

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....revenue and margin low. The TPO accordingly made downward adjustment on the AE purchase of Rs. 2,01,49,026/- taking comparable margins at 4.33%. The A.O issued draft assessment order to the assessee including the TP adjustment suggested by the TPO. The assessee filed objection before DRP rejecting M/s. RRB Energy Ltd. as a comparable company while arriving at profit margin of comparable company to 4.33%. The Ld. DRP has rejected the assessee's objection after examining the annual report of M/s. RRB Energy Ltd. as this company has its project only in Tamil Nadu, whereas the assessee has its presence in more than one state. The Hon'ble DRP has also noted that the comparable company has relocated the manufacturing facility as well as corporate....