S.92CA: Avoidance of tax- Transfer pricing -Arm's length price-TNMM-CUP method-Matter sent back for
getting comparable.
Assessee, shipping agent of French holding company and Singapore AE, received commission container control fees, detention collection fees, intermodal container handling fees. It also recovered communication expenses and insurance premium paid in course of service.TPO applied CUP method.TPO merely compared data with that of a third party agent of holding company which worked for it earlier and made adjustment in respect of so called undercharged container control fees and recovery of communication expenses. TPO had neither examined comparables nor TNMM for benchmarking ALP in relation to international transactions.In appeal Commissioner (Appeals) had not called for comment upon comparable short listed by assessee. Tribunal held thatCUP method and data of erstwhile third party could not be applied.However ,since there was no occasion to examine comparables and applicability of TNMM, matter was to be restored back to file of TPO, who would require assessee to furnish comparables into similar line of business and activities and examine same for benchmarking ALP. Matter partly in favour of assessee. (A. Y. 2005-06)
No comments:
Post a Comment