Lockheed Martin India Pvt. Ltd. vs. ACT

Parties Involved

Facts Summary

This appeal arises from an order dated 30.12.2015, passed under sections 143(3) and 144C of the Income Tax Act, 1961, by the Learned Assessing Officer (Ld. AO). The appellant, Lockheed Martin India Pvt. Ltd., is engaged in marketing, promotion, and advertising of products manufactured by M/s Lockheed Martin Corporation and its group companies. The assessee rendered market support services to its Associate Enterprise (AE) and was compensated on a cost plus 10% basis. The assessee submitted a transfer pricing report with certain comparables, which were altered by the Learned Transfer Pricing Officer (Ld. TPO), resulting in an upward adjustment of Rs.104,84,439/-. The assessee is aggrieved by this action and has approached the ITAT with several grounds of appeal, challenging the rejection of its Arm's Length Price (ALP) determination, the use of data pertaining to multiple years, the application of certain filters, the modification of comparables, and the denial of working capital adjustment, among other issues.…

Legal Issues

• 1. Rejection of the order dated December 30, 2015 by the Ld. AO.
• 2. Rejection of the ALP determined and transfer pricing analysis conducted by the appellant.
• 3. Rejection of the use of data pertaining to multiple years.
• 4. Rejection/modification of certain filters applied by the appellant.
• 5. Modification of the set of final comparables.
• 6. Denial of working capital adjustment.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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