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TMI Blog2024 (12) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... ference on our part. Hence, we uphold the same. Appeal by the Revenue is dismissed. - Shri Shamim Yahya, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Appellant : S h. Neeraj Jain, Adv. Ms. Richa Aggarwal, A.R. For the Respondent : Sh. Sandeep Kr. Mishra, Sr. DR. ORDER PER SHAMIM YAHYA, AM : The Revenue has filed the Appeal against the order dated 21.08.2018 of the Ld. CIT(A)-44, New Delhi relating to assessment year 2012-13 on the following grounds:- 1. Whether in the facts and circumstances of the case and in law the Ld. CIT(A) was right in rejecting the CUP as the most appropriate method by the TPO. 2. Whether in the facts and circumstance of the case and in law the Ld. CIT(A) was right in deleting the adjustment m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment years 2005-06, 2007-08, 2008-09, 2009-10 and 2011-12, directed the AO to delete the transfer pricing adjustment and accordingly allowed the grounds. The relevant observations of the Ld. CIT(A) are reproduced as under:- 5.3 The appellant stated that it had determined the arm's-length price of the international transactions pertaining to sale of finished goods and payment of commission to its AE, Taratec SA by applying TNMM as the most appropriate method. It was submitted that since the operating profit to sales ratio of the appellant at 24.63% was higher than the. average operating profit to cost ratio of the comparable companies at 17.92% therefore the international transactions undertaken by the appellant were at arm's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arguments of the Ld. AR are similar in the consolidated year for these three assessment years the addition was deleted relying on the decisions of this CIT(A) s for AY 2005-06. The decision of the CIT(A) in assessees case for assessment year 2005-06 dated 08/01/2010 is reproduced as under: 10.6 I have considered the issue. It is a settled possession as clarified by the Central Board of Direct Taxes vide Instruction No. 3 of 2003 dated 20/05/2003 that in terms of section 92CA the role is limited to determination of arm's length price in relation to international transactions referred to him by the assessing officer. The price has to be determined by any one of the methods stipulated in subsection (A) of section 92C and by applying the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction applying transactional net margin method. The international transaction of payment of export commission, too, is held to be at arm 's-length and addition of Rs. 60,38,776 made on the basis of the order passed by the TPO, is directly to be deleted. The finding of CIT (a) for assessment year 2007-8, 200 -09 and 2009-10 is reproduced as under: - Commission paid to the AE Ld TPO has made the addition on account of treating ALP of commission paid to the AE in respect of unrelated export sales by applying CUP as nil. The basic contention of the Ld. TPO is that there is no significant services rendered by its AE to get the commission ranging at the rate between 5 - 15% as per the Agreement entered into between the appellant and its AE. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby direct the AO/TPO to delete the addition made on account of arm's-length price adjustment of the commission paid. As a result these grounds of appeal are allowed.' Facts are similar following decision of my predecessor CIT(A)) for assessment year 2005 - 06 and my own appeal order for AY 2007 - 08, 2008 - 09 and 2009 - 10 I direct the AO. Accordingly, these grounds of appeal are allowed. 5.7 The material facts of the case are similar in the instant year also. In accordance with the principle of consistency and respectfully following the order of the CIT(A) for assessment years 2005-06, 2007-08, 2008-09, 2009-10 and 2011-12 referred to above, the AO is directed to delete the transfer pricing adjustment. The grounds of appeal are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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