IN THE ITAT MUMBAI BENCH ‘L’
Assistant Commissioner of Income-tax, Range 7(2)
versus
Rhoida Chemicals India (P.) Ltd.
IT Appeal No. 4201 (Mum.) of 2007
[Assessment year 2003-04]
SEPTEMBER 28, 2012
ORDER
Amit Shukla, Judicial Member
The aforesaid appeal preferred by the Revenue, is directed against the impugned order dated 30th March 2007, passed by the learned Commissioner (Appeals)-VII, Mumbai, for the quantum of assessment passed under section 143(3) of the Income Tax Act, 1961 (for short “the Act”), for assessment year 2003-04.
2. The sole dispute in this appeal is with regard to transfer pricing adjustment of Rs. 34,20,335, made by the Transfer Pricing Officer (for short “TPO”) in his order passed under section 92CA(3) of the Act.
3. Briefly stated the facts of the case are that the assessee is an indirect subsidiary of Rhodia S.A. France. The assessee, which is incorporated in India, is primarily involved in canvassing of Rhodia Products from and around the world to the various customer of India. It is also involved in distribution of specialties chemicals imported from various associated enterprises and to some extent manufacturing certain Rhodia Products in India. During the course of assessment proceedings, the Assessing Officer referred the matter to the TPO for computation of Arm’s Length Price in relation to the international transactions undertaken by the assessee during the year. The assessee has undertaken following international transactions and the methods employed for determining the Arm’s Length Price during the year under consideration:-
