This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
A comparable cannot be rejected merely for extremely high/low margin compared to peers
Case Law Details
- Case Name
- JCIT Vs Amway India Enterprises Pvt. Ltd. (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2013-14
- Courts
- All ITAT, ITAT Delhi
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Advertisement
JCIT Vs Amway India Enterprises Pvt. Ltd. (ITAT Delhi)
A comparable should not be rejected simply on the ground that is margin is extremely high (or low) in relative comparison to the data pertaining to its peers.
It is specifically observed by the CIT(A) that the rejection of the two comparables by the TPO, are based on conjectures and surmises. It is pertinent to note that the filters used by the TPO does not indicate that the high rates in respect of determination of ALP of royalty is one of the criteria of the rejection while confronting the assessee. The ratio laid down b...
