| |
The Tax PublishersITA No. 2051/Mum/2016
2020 TaxPub(DT) 4105 (Mum-Trib)INCOME TAX ACT, 1961
Section 92C
Assessee was engaged in the trading of surveying and measurement equipments, whereas PAE Ltd. was engaged in trading in auto batteries, auto partes, industrial batteries, Power backup systems and solar. There was no similarity in the products between assessee assessee and PAE Ltd. and product differences between assessee and PAE Ltd. were not at all acceptable in applying RPM. In view of this factual scenario and principles governing RPM, TPO rightly excluded PAE Ltd. from the final set of comparables.
|
Transfer pricing - Determiantion of ALP - Selection of comparables - Products dissimilarity vis-a-vis RPM method adopted by assessee
Assessee imported surveying and measurement equipments from its AE abroad and sold the same to third parties without any value addition. It adopted RPM as the MAM and suggested PAE Ltd. as comparable. TPO rejected the same. Held: Assessee was engaged in the trading of surveying and measurement equipments whereas PAE Ltd. was engaged in trading in auto batteries, auto partes, industrial batteries, Power backup systems and solar. There was no similarity in the products between assessee assessee and PAE Ltd. and product differences between assessee and PAE Ltd. were not at all acceptable in applying RPM. In view of this factual scenario and principles governing RPM, TPO rightly excluded PAE Ltd. from the final set of comparables.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2011-12
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|