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2016 (5) TMI 53 - ITAT CHANDIGARHTransfer pricing adjustment - MAM - whether comparable uncontrolled price method is appropriate? - Held that:- There is no error in the order of the learned Commissioner of Income-tax (Appeals) in considering the evidences produced at the appellate stage. The assessee was prevented by sufficient cause from producing additional evidences before the Transfer Pricing Officer/Assessing Officer because the accountant who was looking after the matter was not well at that stage and ultimately he expired. This explanation of the assessee have not been challenged by the Revenue through any material on record. The learned Commissioner of Income-tax (Appeals) on perusal of the transfer pricing study carried out by the assessee, came to the finding that prices charged from the uncontrolled enterprises are either equal or lower than the prices charged from the associate enter prises. The findings of fact recorded by the learned Commissioner of Income-tax (Appeals) has not been rebutted by the Revenue through any material on record. It would, therefore, clearly support the contention of the assessee that comparable uncontrolled price method was relevant to be applied in the case of the assessee. The learned Commissioner of Income- tax (Appeals) was, therefore, justified in holding that the comparable used by the Transfer Pricing Officer under transactional net margin method was functionally and substantially different from the study of the assessee, therefore, could not lead to correct determination of arm's length price. Therefore, addition made by the Assessing Officer on transactional net margin method would not be justified. In this background, the arm's length price determined according to the comparable uncontrolled price method as carried out by the assessee is correct arm's length pricing recorded in the assessee's books of account. The learned Commissioner of Income-tax (Appeals), therefore, on proper appreciation of evidences and material on record, correctly deleted the addition. - Decided in favour of the assessee Agricultural income - sale of poplar trees - assessee had not submitted the proof of ownership/possession of the land and cultivation - Held that:- mmissioner of Income-tax (Appeals), on perusal of the assessment record found that the assessee has filed copy of the lease deed and sapling of poplar trees was done in the year in which land was taken on lease. The record also shows that the assessee has filed copy of certificate issued by Wakf Board transferring the lease in favour of the assessee which was not considered by the Assessing Officer. It was also found that in earlier years, the assessee has shown agriculture income which is accepted. The land was same which was taken from Wakf Board. The learned Commissioner of Income-tax (Appeals), from the details on record found that no agriculture income in respect of the land taken on lease from Wakf Board has been reflected in the income which makes it clear that the assessee had been in possession of the land of the Wakf Board since 1996 and land had not been put to use for regular agriculture operations. The trees had been planted in the year 1996 and were later on sold in the assessment year under appeal. The amounts of sale of poplar trees were received through cheque. The learned Commissioner of Income-tax (Appeals) was, therefore, justified in deciding the issue in favour of the assessee
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