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TMI Blog2016 (8) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... file of Assessing Officer, who shall consider the plea of assessee and shall after obtaining report from the TPO in this regard, decide the issue in accordance with law. Reasonable opportunity of being heard shall be afforded to the assessee while deciding the issue. The grounds of appeal raised by the assessee are thus, allowed. - ITA No.139/PN/2014 - - - Dated:- 12-8-2016 - Ms. Sushma Chowla And Shri R.K. Panda, JJ. Appellant by : S/Shri Ajit Tolani and Darpan Kirpalani Respondent by : Shri S.K. Rastogi, CIT ORDER Sushma Chowla, This appeal filed by the assessee is against order of DCIT, Circle 1(1), Pune, dated 19.11.2013 relating to assessment year 2009-10 passed under section 143(3) r.w.s. 144C(13) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. TPO erred in applying internal CUP by comparing prices charged to domestic customers with prices charged to the AEs in spite of differences on account of functions performed, risks assumed, geographies of markets, market size, volumes transacted, commercial circumstances, economic circumstances and various other differences. 3.2 On the facts and circumstances of the case, and in law, the DRP, the Ld. AO and the Ld. TPO erred in applying internal CUP without following the provisions of Rule 10B(3); Application of Internal Cost Plus Method ('CPM') by the Ld. AO I TPO not Appropriate 4 On the facts and circumstances of the case, and in law, the DRP, the Ld. AO and the Ld. TPO erred in applying internal CPM by comparing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions 7 On the facts and circumstances of the case, and in law, the DRP, the Ld. AO and the Ld. TPO have not allowed the assessee the benefit of 5% variation envisaged in the proviso to Section 92C(2) of the Incometax Act, 1961. 8 On the facts and circumstances of the case, and in law, the DRP, the Ld. AO and the Ld. TPO have not maintained consistency and uniformity in the TP audits over the assessment years by rejecting the external TNMM adopted by him in AY 2008 -09 and instead adopting an internal CPM/ internal CUP for AY 2009 -10. 9 On the facts and circumstances of the case, and in law, the DRP, the Ld. AO and the Ld. TPO have erred on the facts and in law in initiating penalty proceeding under sections 274 read with section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from the Assessing Officer in the case of assessee in line with APA proceedings carried out in subsequent years. On the next date of hearing, the learned Departmental Representative for the Revenue filed a letter dated 15.07.2016 along with report received from DCIT(TP) 1(1), Pune dated 13.07.2016 and it is reported that international transactions during the year under appeal were similar to the international transactions entered during assessment years 2010-11 to 2015-16. 6. On perusal of record and written submissions made by the assessee and the report received from the TPO, we find that for the year under consideration, the assessee had entered into international transactions with its associate enterprises which are as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee at ₹ 4,55,95,256/-. 8. The perusal of grounds of appeal reflects that the assessee is in appeal on account of transfer pricing adjustment made in the hands of assessee. No other grounds of appeal have been raised by the assessee other than transfer pricing adjustment. The assessee has made a request since it had entered into Advance Pricing Agreement (APA) with CBDT covering nine years from assessment years 2010-11 to 2013-14 under roll back provisions and from assessment years 2014-15 to 2018-19 being the balance APA period, similar proposition should be applied to the year under consideration also as the international transactions entered into by the assessee with its associate enterprises in the instant assessment year are id ..... X X X X Extracts X X X X X X X X Extracts X X X X
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