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2010 (11) TMI 565 - ITAT, MUMBAIArms length price - Addition - Deduction u/s 80HHC - Rectification of mistakes - TNMM - the first appellate authority has not adjudicated on the submissions of the assessee on the application of TNMM but gave relief by examining the operating margin at entity level - it is clear that under Chapter X of the Income-tax Act, the determination of ALP of an international transaction has to be only at the transaction level or at the level of a class of transactions - T.P.O. is not authorized to determine the net operational profits at the enterprises level and thereby determined the total income of the assessee, but that he shall determine only, the ALP of the international transaction is correct - they have conducted the transfer pricing study and arrived at the ALP by comparing the net profit margins realized by the enterprises from an international transaction, with the net profit margin of transaction of another enterprise of same class - whether the assessee in its transfer pricing study, has arrived at the ALP by comparing the net profit margin realized by the enterprises from each international transaction or the aggregate of a class of an international transaction, with the net profit margin realized by another similar entity on an international transaction or on a class of international transactions, as claimed by the assessee - If this exercise has been done by the assessee, then as the TPO has not contradicted these findings, the claim of the assessee that the transfer pricing study report issued under section 92E has to be accepted by the Revenue and no adjustment has to be made, will have to be accepted by the Assessing Officer - Appeal is allowed by way of remand
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