Mumbai Tribunal holds that segmental accounts should be considered for the computation of the Profit Level Indicator

Brief: – The Mumbai bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of M/s Tecnimount ICB Pvt. Ltd. Vs ACIT, Mumbai, ITA No. 7098/Mum/2010, on transfer pricing issues arising from equipment supplied and technical services rendered by the Taxpayer to its Associated enterprises (AEs). The Tribunal ruled in favour of the Taxpayer stating that segmental accounts should be considered for the calculation of the Profit Level Indicator (PLI). Facts of the case Tecnimount ICB Pvt. Ltd., a joint venture between Tecnimount Edison Group, Italy (“Tec...