DCIT, NEW DELHI vs. M/S. RAYBAN SUN OPTICS INDIA LTD, GURGAON

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ITA 4203/DEL/2010Status: DisposedITAT Delhi19 April 2016AY 2004-0522 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the TPO's application of the CUP method for import of raw materials was not justified due to significant differences and lack of comparable uncontrolled transactions. The Tribunal also found the TPO's application of the RPM method for another transaction to be flawed due to the absence of comparable uncontrolled transactions.

What were the facts?

The Revenue appealed the deletion of transfer pricing adjustments made by the TPO regarding international transactions of Rayban Sun Optics India Ltd. The TPO applied the CUP method for import of raw materials, while the assessee argued for TNMM and presented differences with third-party prices.

What were the issues?

Whether the Comparable Uncontrolled Price (CUP) method was correctly applied by the TPO for import of raw materials, and whether the Resale Price Method (RPM) was correctly applied for another international transaction.

Which sections of the Income-tax Act were involved?

Section 92C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : I-1 : NEW DELHI

Before: SHRI R.S. SYAL, AM & SHRI C.M. GARG, JM

For Appellant: Shri Deepak Chopra, Ms Rashi Khanna, Ms Neha Singh, Advocates
For Respondent: Shri Hemant Gupta, Sr. DR
Hearing: 13.04.2016Pronounced: 19.04.2016

per law.

17.

In the result, the appeal is allowed for statistical purposes.

The order pronounced in the open court on 19.04.2016.

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