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TMI Blog2009 (3) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... . This appeal by the revenue for the A.Y. 01-02 is directed against the order of CIT(A). The only ground of appeal of the revenue is as under:- "On the facts and in the circumstances of the case, the ld. CIT(A) erred in deleting the addition of ₹ 18,58,960/- made by the AO by enhancing the marking up on software development cost from 5% to 10% as per the provisions of sec. 92 of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that no reference was made by the AO to the Transfer Pricing Officer u/s. 92 which should have been done if he was of the view that the provisions of sec. 92 are applicable to the case of the assessee. He submitted that the AO in the succeeding A.Y. 02-03 has referred the issue to the Transfer Pricing officer (TPO) and the TPO has accepted that case of the assessee, wherein the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are development services, SDRC, US shall pay the assessee company an amount equal to the cost of providing development services plus a mark-up @ 5%. The AO has made addition on account of increased mark-up 10% to the income of the assessee company by invoking the provisions of sec. 92 of the Act. We find that the issue is covered with the instructions of the CBDT circular no. 12/2001 dated 23.08.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmission of the assessee that the AO could not show that how the facts of the case of M/s. Sapien ad Corporation are similar to the facts of the case of the assessee. In these facts of the case, we hold that there is no mistake in the order of the CIT(A) in holding that in the absence of any evidence to suggest or indicate that there exists an arrangement for avoidance of tax and in deleting the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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