2018 (10) TMI 1818

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..... Respondent : Shri Sanjay I Bara, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the Revenue is preferred against the assessment order dated 05/02/2015 framed u/s 143(3) r.w.s 144C(1) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] pertaining to A.Y 2010-11. 2. The sum and substance of the grievance of the Revenue is that the DRP erred in directing .....

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..... s ruled in favour of the assessee and since the department is in the process of filing SLP against the decision, therefore, the view taken in A.Y 2006-07 is being followed. The relevant findings of the Hon'ble High Court reads as under: "Held, allowing the appeal (i) that to apply the TNMM, the assessee's net profit margin realized from international transactions had to be calculated only wi .....

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..... e enterprise in question, i.e. the assessee, as opposed to the AE or any third party. The textual mandate, thus, is unambiguously clear.  (ii) The TPO‟s reasoning to enhance the assessee's cost base by considering the cost of manufacture and export of finished goods, i.e., ready-made garments by the third party venders (which cost is certainly not the cost incurred by the assessee), i .....

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