Schneider Electric India Private Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that the benefit of working capital adjustment while computing the ALP has also not been borne in mind hence matter restored to the file of TPO/ AO for fresh determination in accordance with law.
Facts- Appellant was primarily engaged in the manufacturing of low voltage and medium voltage equipment and distribution of electrical equipment and also provided e content e catalogue IPO services, contract R&D support services and business support services to its AEs.
TPO proposed to consider the aggregated margin of sub-segmentation carried out by the Appellant in the TP study with respect to the manufacturing segment and benchmark the same against the updated margins of the comparables selected in the TP study. The TPO disregarded the contentions of the Appellant and made an adjustment of INR 322,984,000 with respect to the transaction of import of components of the Appellant vide its order dated October 20, 2011. DRP, disregarded the additional evidences filed by the Appellant in support of the “transaction by transaction approach adopted by the Appellant in respect of its various international transactions and confirmed the addition made by TPO/AO in its directions dated September 26, 2012.
