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TMI Blog2013 (5) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions and not comparison of operating margins of the enterprises. The Tribunal therefore restored the issue to the file of AO for fresh adjudication in accordance with law. The facts this year admittedly are identical. Therefore we set aside the order of CIT(A) and restore the matter back to the file of AO for passing a fresh order. Allowability of claim of bad debt - assessee had not made claim in the return of income but the claim was made during the course of assessment proceedings – Held that - Since the factual aspects regarding fulfillment of condition for allowability of bad debt claim have not been examined, we restore the issue to the file of AO for adjudicating the same after examination of records and after allowing op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to submit report on the basis of data for the financial year 2006-07 which was submitted by the assessee giving weighted average margin of 7.97%. The assessee submitted that the margin declared by the assessee was within 5% range and, therefore, no adjustment was required to be made. 2.1 The TPO however noted that four out of the 12 comparables selected by the assessee i.e. Pee Cee Cosma Scope Ltd., Hipolin Ltd., Ader Multiproducts Ltd. and Godrej Industries Ltd. which were engaged in the business of cosmetics, toiletries, shaving cream, detergents and personal care products were not comparable to the business of the assessee which was manufacture of perfumes and fragrances etc. The TPO therefore, excluded these products but included Kha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the parties agreed that the same issue has already been decided by the Tribunal in assessee's own case in assessment year 2006-07 in ITA No.4820/M/09 and the matter has been restored to the AO. We find that in assessment year 2006-07 also, the AO based on the report of TPO had made adjustment to the entire purchases including domestic purchases applying the enterprise level margin. In appeal, CIT(A) deleted the addition. In further appeal, the Tribunal observed that enterprise level profit margin had been applied in relation to international transactions with AEs which was not correct. The assessee had argued that the limited issue before the Tribunal was whether adjustment could be made to the entire purchases or to only the internatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2007-08 and income pertaining to the same had been taken into consideration in the computation of income in the earlier years. It was also submitted that the AO had not considered the claim as claim had not been made in the return of income. It was pointed out that though the AO could not consider any claim otherwise than by way of filing return of income in view of the judgment of Hon'ble Supreme Court in the case of Goetz India Ltd. v., the appellate authorities had power to entertain such claim. CIT(A) however did not accept the contentions raised. It was observed by him that the AO and CIT(A) had co-terminus jurisdiction and therefore, what was true and applicable to AO was also applicable to CIT(A). CIT(A) therefore, upheld the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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