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2020 (8) TMI 925 - ITAT BANGALORETP Adjustment - AE’s transaction by adopting internal TNMM - HELD THAT:- We remand the matter back in the present two years also to AO/TPO to undertake fresh analysis to bench mark the AE’s transaction by adopting internal TNMM in preference to external TNMM and if the assessee is able to establish that he has undertaken similar international transaction with AE and non-AE in the same countries, external benchmarking will be done otherwise the AO/TPO will act in accordance with law. The entire TP issue in both the years is restored back to AO/TPO with the above directions for fresh decision by a speaking and reasoned order after affording reasonable opportunity of being heard to the assessee. Disallowance out of club expenses - We find that learned CIT(A) has decided the issue in cryptic manner without any discussion in respect of any judicial pronouncement on this issue. The judgment as noted above is very much relevant for deciding this issue and since the entire TP issue is being remanded to the AO/TPO for a fresh decision, we feel it proper to remand this issue also to the file of AO for a fresh decision after considering all judicial pronouncements on this issue along with the judgments noted above after allowing reasonable opportunity of being heard to the assessee and the AO should pass a speaking and reasoned order on this issue also. Accordingly, ground 2 is allowed for statistical purposes in both years.
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