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2012 (6) TMI 650 - ITAT JAIPURTransfer pricing - arm's length price (ALP) - selection of comparable - set-off of unabsorbed depreciation - held that:- If the findings of ld. CIT(A) are taken into consideration, which in our humble view remained uncontroverted, then the mean profit on the basis of 8 companies mentioned above are not applicable on the facts of the present case. Therefore, arm length price adopted by ld. TPO on international transactions were not correct. On application under section 154, the ld. CIT(A) has held that an addition of ₹ 40 lacs has to be sustained which is on account of opening stock and by rectifying order under section 154 has reduced the deletion by ₹ 40 lacs or odd. The issue in respect to deletion reduced by ₹ 40 lacs or odd has been restored by us to the file of ld. CIT(A) to decide the same afresh after affording reasonable opportunity of being heard to the assessee as, as per order of ld. CIT(A), no opportunity was provided to the assessee. Therefore, we hold that the order of ld. CIT(A) deleting the addition of ₹ 1 crore or odd was correct and we confirm the order to that extent. The AO disallowed depreciation for the reason that the same cannot be allowed to be set off of brought forward unabsorbed depreciation against current year's income from other sources. The ld. CIT(A) allowed the issue in favour of the assessee - brought forward unabsorbed depreciation can be allowed from the current year's income from other sources. - Decided in favor of assessee.
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