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2014 (12) TMI 803 - IITAT JAIPURTransfer pricing adjustment – Selection of Comparables - M/s. Atual Ltd. – Held that:- They are comparable because as decided in Sony India (P) Limited. Versus Deputy Commissioner Of Income-tax, Circle - 9(1)[2008 (9) TMI 420 - ITAT DELHI-H ] wherein the CIT (A) has given detailed reasoning for holding that both these companies are comparable – the view taken by the CIT(A) is correct and there is no unreasonableness in the findings of CIT (A). M/s. Indian Toners and Developers Ltd. – Held that:- The claim of the assessee was that the company manufactures toners and developers for photocopies, laser printers and digital printers – it cannot be considered as comparable to the printing inks manufactured by assessee - TPO noted that the company M/s. Indian Toners and Developers Ltd. and assessee has same NIC Code i.e. 24222 hence this company was held as comparable - CIT(A) found that M/s. Atul Ltd. is a comparable as decided in Sony India (P) Limited. Versus Deputy Commissioner Of Income-tax, Circle - 9(1)[2008 (9) TMI 420 - ITAT DELHI-H ] and in respect of M/s. Indian Toners & Developers Ltd., it was held that this is not a comparable case because there was vast difference in the product manufactured by assessee and manufactured by M/s. Indian Toners & Developers Ltd. - CIT (A) found that this is also incorrect to say that both the companies has same NIC Code i.e. 24222 - assessee company’s NIC Code is 24223 whereas M/s. Indian Toners & Developers NIC Code is 24222 - a list of NIC code is placed on record and it was found that NIC code of both the companies i.e. M/s. Indian Toners & Developers Ltd. and assessee company are different – thus, the view of the CIT(A) is correct. Application of section 154 – Rectification of order on mistake apparent from record – Held that:- 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 u/s 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 to the CIT (A) to decide the same afresh after affording reasonable opportunity of being heard to the assessee as, as per order of CIT (A), no opportunity was provided to the assessee - the order of CIT(A) in deleting the addition of ₹ 1 crore or odd was correct and upheld – Decided partly in favour of assessee.
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