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2019 (2) TMI 1783 - ITAT DELHITP Adjustment - specified domestic transaction of collaboration expenses has been benchmarked by the assessee following the other method as most appropriate method - authority of the TPO while benchmarking international transaction - assessee has valued the transaction at which the third-party has made payment for the transaction - HELD THAT:- TPO instead of benchmarking the transaction in accordance with the law, he simply taken the value of the specified transaction at nil observing that reliable data was not available. In our opinion, the learned TPO is not justified in rejecting the benchmarking of the assessee in this manner. If data is not available then there are two options before him. First option is to gather the data available in public domain. If data is not available in public domain, he should collect from private domain by way of issue notice under section 133(6) of the Act and confront the same to the assessee and then decide the arm’slength price of the specified domestic transaction. The second option is that if no data is available, then accept the benchmarking carried out by the assessee. The TPO has no authority to hold that this transaction should not have taken place. See M/S. CUSHMAN AND WAKEFIELD (INDIA) PVT. LTD. [2014 (5) TMI 897 - DELHI HIGH COURT] As the TPO has not carried out exercise of determining the arm’s-length price of the specified domestic transaction in accordance with law, in the interest of justice, we feel it appropriate to restore this issue back to the file of the Ld. AO/TPO for deciding afresh is directed above. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The grounds of the appeal of the assessee are accordingly allowed for statistical purposes.
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