Case Law Details
Nectar Lifesciences Ltd. Vs ACIT (ITAT Delhi)
Once there was a direct internal CUP, i.e., the assessee company had purchased electricity from Punjab State Power Corporation at Rs.7.57, then it represents the market rate on which any industry undertaking or consumer is getting the electricity. Thus, we do not find any reason as to why such market rate or CUP should be rejected. Nowhere, it has been brought by the TPO as to why the average trading rate in Indian Energy Exchange should be applied as external CUP. Accordingly, we hold that the sale of electricity @ 6.72 per unit is at Arms’ Length and no adjustment is required in this segment/unit.
FULL TEXT OF THE ORDER OF ITAT DELHI
The aforesaid appeal has been filed by the assessee against the assessment order dated 29.11.2018 passed u/s.143(3) r.w.s. 144C(1) for the Assessment Year 2014-15 in pursuance of the directions given by the ld. Dispute Resolution Panel vide order dated 20.09.2018. In the grounds of appeal, the assessee has challenged the addition On Transfer Pricing Adjustment at Rs.33,36,66,839/-. The grounds of appeal reads as under:
1.1 The assessment order passed by the Ld. AO in pursuance to the directions issued by the Hon’ble Dispute Resolution Panel (“DRP”) is a vitiated order as the Hon’ble DRP erred both on facts and in law in confirming additions made by the Ld. AO/Ld. Transfer Pricing Officer (“TPO”) to the Appellant’s income by issuing an order without appreciation of facts and law.
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