Case Law Details
Case Name : Schefenacker Mother son Ltd Vs. ITO and Schefenacker Mother son Ltd Vs. DCIT [ITAT Delhi]
Appeal Number : ITA No. 4459/DEL/072003-04 and ITA No.4460/DEL/07
Date of Judgement/Order :
Related Assessment Year : 2003-04 and 2004-05
Courts :
All ITAT ITAT Delhi
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In the case of Schefenacker Mother son Ltd v. ITO, ITA No. 4459/DEL/07 for AY 2003-04 and schefenacker Mother son Ltd Vs
DCIT, ITA No. 4460/DEL/07 for AY 2004-05, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal), held that cash profit on sales “CP/Sales” or cash profit on total cost excluding depreciation “CP/ TCdep” can be adopted as an appropriate profit level indicator (PLI) under Transactional Net Margin Method (TNMM), to adjust for material differences in the assets utilised between tested party and comparable companies and thereby enable better comparability analysis.
Facts of the Case
- SML, a joint venture between Mother son Sumi Systems Ltd, India and Schefenacker International Gm B&H, Germany manufactures rear view mirrors and cable assemblies for the automobile industry.
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