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TMI Blog2025 (3) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Dhinal Shah, AR For the Revenue : Shri Prathvi Raj Meena, CIT-DR ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER The above appeal has been filed by the assessee against order passed by the Assessing Officer, DC/ACIT TP-2, Ahmedabad [hereinafter referred to as "AO"] dated 15.07.2024 under section 143(3) read with sections 144C(13)/144B of the Income Tax Act, 1961 ("the Act" for short) pertaining to Assessment Year 2020-21 after complying with the directions of the Dispute Resolution Panel ("DRP" for short) on the objections raised by the assessee. 2. The grounds raised by the assessee are as under: 1.1. On the facts and in the circumstances of the case and in law, the learned AO / Hon'ble DRP has erred in facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case and in law, the learned AO / Hon'ble DRP has erred in not considering Nimbus Pipes Ltd as comparable company in the final set of comparable companies. 3. The grievance raised by the assessee relates to the adjustment made to the arm's length price (ALP) of the international transactions carried out by the assessee with its Associate Enterprises (AE) in terms of section 92C of the Act. 4. The facts of the case being that the assessee-company was engaged in the business of manufacturing and trading of drip irrigation systems. During the impugned year, the assessee had entered into several international transaction with its AEs, the details of which are reproduced at page no.2 of the order of the TPO p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parables, found to be correct by him, after rejecting four comparable, which the assessee had also selected, he passed order u/s 92CA of the Act proposing an upward adjustment of Rs. 13,28,62,592/- to the ALP of the international transaction of the assessee. 6. The assessee objected to the same to the DRP, who after considering the objection of the assessee, passed the order giving necessary directions to the AO. The AO after considering direction of the DRP passed his final order making adjustment to the ALP to the international transaction to Rs. 13,28,62,592/- as proposed by the TPO. 7. Aggrieved by the same, the assessee has come up in appeal before the Tribunal raising the above grounds: 8. During the course of hearing before us, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring-trading mix, the results of the company can be accepted from a qualitative comparability point. 9. The ld.counsel for the assessee contended that despite the DRP finding the NPL to be a comparable, the AO had not included the same while determining the ALP of the transaction. He drew our attention to the AO's order in this regard, who reiterated the adjustment proposed by the TPO of Rs. 13,28,62,592/- to the ALP of the international transaction, which was determined without including the NPL as comparable. 10. The ld.DR, when confronted with this fact, had nothing to say to controvert the factual averments made before us. 11. In the light of the same, we direct the AO to include Nimbus Pipes Ltd. in the final comparable sets, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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