TPO cannot disallow aggregation of negative values which was allowed in original order by TPO

ACIT Vs GP Global Energy Pvt. Ltd. (ITAT Delhi)

In so far as bench marking the international transactions using customs data is concerned we sustain the order of the Ld. CIT(Appeals) as the Ld. CIT(A) observed that the Chennai Bench of the Tribunal in the case of Coastal Energy Pvt. Ltd. Vs. ACIT (supra) held that the valuation was made by custom authorities by assigning values to import goods on the basis of scientifically formulated methods as they were responsible for making fair assessment value of the imported goods according to internationally accepted protocols. Therefore, we see no infirmity in the order of the Ld. CIT(A) on this issue. Ground no. 1 of the Revenue is rejected.

We also sustain the order of the Ld. CIT(Appeals) in directing to consider entire set of transactions as has been done in the impugned order of the TPO dated 30.01.2016 since the scope of rectification u/s 154 by the TPO is very limited and the TPO cannot disallow the aggregation of negative values which was allowed in the original order by the TPO since the issue involves interpretation of law and is a debatable issue. Therefore, the same is beyond the scope of section 154.

FULL TEXT OF THE ORDER OF ITAT DELHI

This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-44, New Delhi dated 29.06.2018 for the AY 2012-13. The Revenue has raised the following grounds of appeal:

Please become a Premium member. If you are already a Premium member, login here to access the full content.