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2014 (12) TMI 175 - ITAT DELHIComputation of ALP of international transaction - Upward adjustment to purchase price of imported goods – Held that:- The reliance placed on the data available in the public domain at the time of the assessment proceedings which was not allowed by the AO and ultimately allowed at the Appellate stage cannot be faulted with – there is no reason as to why the Revenue should insist upon ignoring the updated relevant data for the period under consideration - these companies taken in the TP study were comparable there can be no right vested in the Revenue to insist upon the incomplete data available at the time of TP study and refuse to look at the updated data available for the relevant period at the assessment stage - The CIT(A) in appeal has correctly taken the updated data – the CIT(A) rightly was of the view that the transfer price of international transaction as declared by the appellant satisfy arm’s length principle test and no upward adjustment is warranted - Decided against revenue. Deletion of penalty u/s 271(1)(c) – Held that:- The CIT(A) on facts qua the first addition has based his finding on the fact the sales tax debited to the P&L Account –this finding of the fact has not been assailed by the Revenue - Regarding the other addition made by way of disallowance of 40% of the expenses debited to the P&L Account pertaining to staff welfare; communication expenses and business promotion expenses debited to the P&L account - the expenses have come down and the disallowance on facts is an adhoc disallowance – assessee rightly relied upon COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] and CIT(A) was fully justified in quashing the penalty order - the explanation offered was a bonafide and it most definitely was not a false explanation – Decided against revenue.
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