The Tax Publishers2020 TaxPub(DT) 2079 (Del-Trib)

INCOME TAX ACT, 1961

Section 92C

Admach Auto India Ltd. manufactured sheet metal components against brake system manufactured by the assessee company. As per Rule 10TA( b) and Rule 10TA(h), a separate definitions have been laid down for core auto components and non-core auto components. As per Rule 10TA( b)(3), the core auto components means, suspension breaking parts including brake and brake assemblies, brake lining, shock absorbers and leaf springs and Rules 10TA(h) defines “ non-core components” means auto components other than core auto components.Since, business of assessee was “ core auto components”, it could not be compared with an entity which was in the business of “ non- core auto components.”

Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity

Assessee engaged in manufacturing, altering, conversion, procurement, sale and trading of various automotive and aluminium and / or non-automotive brake and aluminium components, spare parts and other related accessories, entered into various international transactions with AE. TPO considered Admach Auto India Ltd. as comparable to assessee's case. Held: Admach Auto India Ltd. manufactured sheet metal components against brake system manufactured by the assessee company. As per Rule 10TA( b) and Rule 10TA(h), a separate definitions have been laid down for core auto components and non-core auto components. As per Rule 10TA( b)(3), the core auto components means, suspension breaking parts including brake and brake assemblies, brake lining, shock absorbers and leaf springs and Rules 10TA(h) defines “ non-core components” means auto components other than core auto components.Since, business of assessee was “ core auto components”, it could not be compared with an entity which was in the business of “ non- core auto components.”

REFERRED :

FAVOUR : in assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 92C

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