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| The Tax Publishers2020 TaxPub(DT) 3095 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
Sabero Organics Gujarat Ltd. Aksharchem (India) Ltd. and Bhageria Dyechem Ltd. earned profit in financial years 2009-10, 2010-11, 2012-13 and 2013-14 and incurred losses only in financial year 2011-12. Such fluctuations were normal in competitive business environment and same could not be considered as reason for rejecting aforesaid comparables treating th4e same as persistent loss making companies.
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Transfer pricing - Determination of ALP - Selection of comparables - Companies having incurred loss in concerned year treated as consistent loss making concern
Assessee imported raw material from and exported finished goods to AE. TPO excluded Sabero Organics Gujarat Ltd. Aksharchem (India) Ltd. and Bhageria Dyechem Ltd. from the list of comparbales treating all these as persistent loss making concerns.Held: Sabero Organics Gujarat Ltd. Aksharchem (India) Ltd. and Bhageria Dyechem Ltd. earned profit in financial years 2009-10, 2010-11, 2012-13 and 2013-14 and incurred losses only in financial year 2011-12. Such fluctuations were normal in competitive business environment and same could not be considered as reason for rejecting aforesaid comparables as these were definitely not persistent loss making companies and were performing similar functions with that of assessee.
Applied:Dover India (P) Ltd. v. Dy. CIT (2017) 88 Taxmann.com 115 (Pune-Trib.) : 2017 TaxPub(DT) 5235 (Pune-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, MUMBAI BENCH
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