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TMI Blog2014 (11) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... year it has been held that the matter is remitted back to the TPO/AO for fresh adjudication – Decided in favour of revenue. Renovation and maintenance expenses disallowed – Held that:- The sum was not towards any renovation of building, but, paid to a company, namely, Towerbase Services Pvt. Ltd., as maintenance charges for Vasant Vihar office on monthly basis - Month-wise details of such payment made aggregating to ₹ 25.20 lac were made available to the CIT(A), which were sent to the AO for comments - No objection was taken by the AO to the correctness of the nature of amount in the remand report – the order of the CIT(A) in allowing deduction for the full amount, which was incurred for the maintenance of office on monthly basis is upheld – Decided against revenue. ISO certification fee paid by the assessee deleted – Held that:- The payment of ISO certification fee is a routine expenditure incurred on annual basis - By no stretch of imagination it can be considered as amounting to acquisition of a capital asset or advantage of an enduring nature - thus, the order of the CIT(A) is upheld – Decided against revenue. - ITA No. 282/Del/2012 - - - Dated:- 31-10-2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the related enterprises were located in Indonesia and Philippines and the unrelated enterprises were located in Indonesia, Philippines, Sri Lanka and Bangladesh. The only other AE was located in Germany. After taking into consideration of the relevant arguments made on behalf of the assessee, the TPO proposed the transfer pricing adjustment of ₹ 54,10,463/-, which was made by the AO. In the appeal before the ld. CIT(A), the assessee raised additional ground to the effect that Transactional net margin method (TNMM) should be adopted as the most appropriate method for computing the arm s length price (ALP). The ld. CIT(A) remitted the additional ground along with the necessary documents to the TPO for comments. The TPO, vide his remand report dated 13.09.2011, objected to the admission of additional ground and contended that the same be rejected. Taking into consideration the Special Bench decision in the case of Quark Systems Pvt. Ltd. Vs. ITO 2010-TIOL-31-ITATCHD- SB, the ld. CIT(A) admitted the assessee s additional ground. The assessee contended that the internal TNMM should be applied to benchmark the international transactions undertaken by it. Creating the segmental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire gamut of the contentions and the factual position, the Tribunal held in para 8.4 of its order as under:- 8.4 We have considered the facts of the case and rival submissions. We do agree with the submissions of the learned counsel that CUP method is not appropriate in respect of sales made to the Degussa, AG, Germany. The reason is that there is no instance of uncontrolled sale either to Germany or to South American countries where the goods were actually shipped by the assessee on CIF basis. In these circumstances, we think it fit to restore the whole matter to the file of the Assessing Officer for fresh determination of the arm s length price of international transactions with AEs by applying an appropriate method and after hearing the assessee. It is specifically mentioned that the Assessing Officer is not bound by any argument made before us or observation made by us and he shall proceed in a manner as if this issue is being decided for the first time. Thus, ground No.2 in the appeal of the assessee and ground No.1 in the appeal of the revenue are treated as allowed for statistical purposes. 4. A cursory look at the observations made by the Tribunal in assessee s c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t stand taken by him in the immediately preceding four years up to A.Y. 2006-07 in following the CUP method, is not available on record. There may have been some change in the factual position necessitating the adoption of TNMM in these later years. Further, the mere fact that the TPO adopted TNMM in a later year can be no ground to argue before the tribunal that the same method be followed in a preceding year, which stand has been specifically rejected by him in the instant years. As such, we cannot uphold the application of TNMM on this reason alone, more specifically, when in the immediately preceding year, where the facts are admittedly similar, the tribunal has restored the matter to the TPO for de novo adjudication. Since the facts and circumstances of the instant year are admittedly similar to those of the immediately preceding year, in respect of which the Tribunal has given unambiguous direction for de novo determination, respectfully following the precedent, we set aside the impugned order and remit the matter to the file of TPO/AO for fresh determination of the issue in accordance with the directions given by the Tribunal for the AY 2002-03. 8. Ground No.2 of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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