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TMI Blog2021 (2) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year. Therefore, respectfully following the aforesaid decision of the co-ordinate bench, we restore the issue to the Assessing Officer for fresh adjudication keeping in view the observations of the co-ordinate bench reproduced hereinabove. Appeal filed by the assessee is allowed, for statistical purpose. - I.T.A. No. 211/Mum/2013 - - - Dated:- 27-1-2021 - Pramod Kumar , Vice President And Saktijit Dey , Member ( J ) For the Appellant : K. S. Ahivaram , Sr. Advocate and Shashi Bekal , AR For the Respondents : A. Mohan , CIT ( DR ) ORDER Saktijit Dey, Member (J) This is an appeal by the assessee against the final assessment order dated 19-10-2012 passed u/s. 143(3) r.w.s. 144C(13) of the Income-tax Act, 1961 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bles(six in number) with average margin of 3.99%.Whereas, he re-computed the margin of the assessee at (-) 13.74% at entity level. As a result, he proposed an adjustment of ₹ 26,33,69,103/-. The adjustment proposed by the TPO was added to the income of the assessee in the draft assessment order. Against the draft assessment order, assessee raised objections before the learned DRP. After considering the submissions of the assessee, learned DRP more or less agreed with the conclusion of the TPO. Accordingly, in terms of the directions of learned DRP, assessment was finalized. 4. Dr K. Shivaram, learned Counsel appearing for the assessee submitted, while dealing with identical issue in assessee's own case in Assessment Year 2007-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngth price of the transaction. For computing the arm's length price there are various methods prescribed in section 92C which includes transactional net margin method (TNMM). in this case, both the assessee and the TPO have applied TNMM method. The assessee had selected six comparables the mean margin of which was found to be lower than the margin declared by the assessee. Therefore, it has been argued that no adjustment was required to be made. The TPO had not accepted the comparables selected by the assessee on the ground that most of them were loss making companies. The TPO has also excluded loss making cases out of seven comparables selected by him for making the TP adjustment. We agree with the submissions of the learned AR that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts dealt in by the assessee. The objection raised by the assessee cannot be accepted if the products selected by the TPO are broadly similar as in TNMM method it is not necessary that the product should be exactly the same as dealt in by the assessee. The objections have also been raised by the assessee that the comparables selected by the TPO were manufacturing concerns. However, the learned CIT (DR) has pointed out that the assessee has also selected manufacturing concerns such as Salora International. In our view, in TNMM method, functions of the comparables selected should be similar. Therefore, it will not be appropriate to compare the margin of manufacturing companies to those of trading companies. The learned CIT (DR) also pointed ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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