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TMI Blog2018 (9) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... w that it is continue to face the difficulties peculiar to the start up phase. There should not be any doubt that the responsibility to substantiate the claim put forth lies upon of the assessee. Accordingly we are of the view that the tax authorities are justified in rejecting this claim of the assessee. With regard to adjustment claimed towards abnormal items, we have already held that the same is required to be considered on merits. Accordingly this claim of the assessee requires examination at the end of the Assessing Officer/TPO. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer/TPO to examine the said claim of the assessee. In the set aside proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer pricing adjustment of ₹ 896.91 lakhs made by the TPO and confirmed by the learned CIT(A). 5. The assessee is engaged in the business of manufacturing/processing of spectacle lenses. It also trades in imported spectacle lenses. The assessee is an Associated Enterprises (AE) of Japanese company. The assessee followed cost plus method for benchmarking manufacturing/processing transactions and resale price method for trading transactions. The assessee adopted operative profit/operative revenue as profit level indicator. The TPO, however, adopted operating profit/operating cost as profit level indicator and proposed adjustment of ₹ 896.91 lakhs. The AO added the same to the total income declared by the assessee. The learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has paid huge management fees to its associated enterprises and hence the assessee has incurred loss. 9. In the rejoinder, learned AR submitted that the assessee has furnished a letter dated 15.12.2014 before the TPO, wherein it was pointed out that certain expenses has been accounted twice in the computation and certain nonoperating expenses have not been excluded. He submitted that the assessee has also pointed certain abnormal expenses and certain abnormal events like reversal of sales. He submitted that the assessee has also claimed that it is incurring losses, since it is still in the starting phase. Hence the assessee has sought for adjustments for the above said exceptional items. 10. We have heard the rival contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equires examination at the end of the Assessing Officer/TPO. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer/TPO to examine the said claim of the assessee. In the set aside proceedings, the Assessing Officer/TPO should also consider the mistakes pointed out by the assessee with regard to computation made by the TPO. 12. The next ground relates to non adjudication of ground No. 2 urged before the learned CIT(A). We notice that the said ground relates to nonadjustment of brought forward business loss of earlier years. Since this matter requires examination at the end of the Assessing Officer, we deem it proper to restore this issue to the file of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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