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TMI Blog2015 (4) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... neither the AO nor the CIT(A) have really examined the assessee’s contention that there was no international transactions with AE’s in the Bio division but have just combined the results of both software development as well as bio division for determining the ALP of the international transaction, we deem it fit and proper to set aside the order of the AO/TPO and remand the matter back to the AO with a direction to refer the matter to the TPO for re-consideration. The AO/TPO shall examine the assessee’s contention and after verifying the details, shall recompute the ALP of the international transaction u/s 92CA of the Act. - Decided in favour of assessee for statistical purposes - IT(TP)A No.639/Bang/2012 - - - Dated:- 17-4-2015 - SMT. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djustment of the difference of ₹ 1,49,91,300/-. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A) who confirmed the order of the AO and the assessee is in second appeal before us. 4. The learned counsel for the assessee has drawn our attention to the fact that the assessee was carrying on the activities of software development and also has a Bio Division. He submitted that the assessee had carried out TP study using CUP method which was rejected by the TPO, who adopted the TNMM as the most appropriate method. It was submitted that by letter dated 11/07/2006, the assessee had submitted that it had earned a net profit of ₹ 1,03,31,319/- from international transaction which works out to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... national transactions each transaction has to be considered separately and when the segmental details of the software development are available, TPO ought to have considered them separately. Thus, according to him, the transfer pricing adjustment made by the TPO is unsustainable. The learned Departmental Representative, on the other hand, supported the orders of the authorities below and submitted that since the assessee failed to furnish the relevant details before the TPO, the same could not be examined by the TPO and the TPO was constrained to take the entity level margin for determining the ALP. He submitted that since the assessee has filed details before the CIT(A) and the CIT(A) had called for a remand report, that it was only aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either the AO nor the CIT(A) have really examined the assessee s contention that there was no international transactions with AE s in the Bio division but have just combined the results of both software development as well as bio division for determining the ALP of the international transaction, we deem it fit and proper to set aside the order of the AO/TPO and remand the matter back to the AO with a direction to refer the matter to the TPO for re-consideration of the issue in the light of our observations above. The AO/TPO shall examine the assessee s contention and after verifying the details, shall recompute the ALP of the international transaction u/s 92CA of the Act. 7. In the result, the assessee s appeal is treated as allowed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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