COMMISSIONER OF INCOME TAX Vs. KEIHIN PANALFA LTD.

JUDGEMENT

(1.) These appeals have been preferred by the Revenue under Section 260A of the Income Tax Act, 1961 (hereafter the 'Act') impugning a common order passed by the Tribunal in ITA 3287/Del/2011 and 5546/Del/2012. The said appeals were also preferred by the Revenue against the orders passed by the Commissioner of Income Tax (Appeals) [hereafter 'CIT(A)'] on 29/03/2011 and 27/08/2012 allowing the appeals preferred by the Assessee against the assessment orders passed by the Assessing Officer (hereafter 'AO') in respect of the Assessment Years 2004-05 and 2005-06 respectively.

(2.) The controversy involved in the present case relates to the Transfer Pricing Adjustment (hereafter 'TP Adjustment') made by the AO in respect of international transactions relating to the purchases made and the royalty paid by the Assessee to Keihin Corporation, Japan (hereafter 'KC').

(3.) The relevant facts relating to the assessment year 2004-05 are narrated as under:-