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2014 (1) TMI 74 - ITAT MUMBAITransfer pricing adjustments - Reduction in amount of Depreciation - Cash profit to Total cost as Profit Level Indicator (PLI) - The assessee demonstrated through its TP study that the price charged or paid to its AEs was at the ALP - The TPO made certain exclusions from the list of comparables which led to the making of TP adjustment - the TP adjustment was eventually made by the AO, it was naturally possible for the assessee to take up its matter before the learned CIT(A) for the first time - the claim of having higher rate of depreciation did not come to be considered for the first time - all the relevant details were already available on record and the assessee simply required the examination of its claim before the CIT(A) Following Dy. CIT v. Quark Systems (P) Ltd.[2009 (10) TMI 591 - ITAT, CHANDIGARH] Decided against Revenue. Adoption of Cash profit to Operating cost as the PLI Held that:- The CIT(A) has allowed the claim of exclusion of depreciation by considering the fact that in subsequent assessment year i.e. 2007-2008 TPO has accepted the same, thus, the principle of consistency cannot be ignored the CIT(A) was justified in applying Cash profit/Operating cost as the correct PLI under Transactional Net Margin Method and resultantly deleting the addition Decided Against Revneue.
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