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2012 (5) TMI 165 - ITAT BANGALORETreatment of Communication Expenses under section 10A - Re-computation of Arm's Length Price - AO while framing the assessment u/s 143(3) computed the deduction under section 10A of the Act by reducing lease line charges from export turnover, but not from the total turnover. - held that:- t if an item is excluded from the export turnover, the same should also be excluded from the total turnover to maintain parity between the numerator and denominator while calculating the deduction under section 10A of the Act. - matter remanded back to AO to recompute the deduction u/s 10A. TP - Re-computation of arms' length price (ALP). - selection of comparable - held that:- no opportunity of being heard was provided to the assessee for rebuttal, therefore the Assessing Officer was not justified in considering those comparables while working out the ALP in assessee's case. In that view of the matter, we deem it appropriate to set aside this issue back to the file of the Assessing Officer, to be adjudicated afresh in accordance with law, after providing due and reasonable opportunity of being heard to the assessee. - Matter remanded back. Adjustment where price variation falls within +/- 5% range of arithmetical mean of the comparables. - held that:- it appears that the benefit of +/- 5% adjustment has not been given to the assessee for the reason (as mentioned by the TPO) that sales made by the assessee to third parties were higher in comparison to the rates of sale by AEs to the assessee. But nothing is brought on record to substantiate the aforesaid observations of the TPO. - Since the facts of the present case are similar to the facts involved in the aforesaid referred to case of Tatra Vectra Motors Ltd. [2012 (4) TMI 359 - ITAT BANGALORE], so respectfully following the said order, we direct the AO to allow the benefit of +/- 5% to the assessee while computing the ALP.
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