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2017 (6) TMI 1044 - AT - Income TaxRejection of CUP method adopted by the assessee as the MAM for the purpose of benchmarking its international transaction with AE - Held that:- In the present case, it is not the case of the assessee that the assessee has purchased all from its A.E. Being so, the ratio laid down by the case laws as relied upon by assessee have no application to the assessee’s case. Hence, we are of the opinion that the application of Berry Ratio is most appropriate method adopted by AO/TPO. DRP is justified and the same is confirmed. This ground of appeal of the assessee is rejected. Disallowing the provisions for warranty by AO/TRP/DRP - Held that:- If the provisions for warranty claimed by the assessee is based on the scientific basis it is to be allowed, provided if the assessee has reversed the excess provisions made in the subsequent assessment years. Accordingly, we remit the issue to the file of AO to examine whether the assessee following the same method of making provisions for warranty expenses and consistent basis year to year and reverse the excess provisions in the subsequent year Addition on delayed payments of Employees contribution to PF and ESI - payment before due date - Held that:- We are of the opinion that the grievance of the assessee pertaining to employee’s contribution towards PF & ESI before due date as prescribed under the Act is squarely covered by the judgment of jurisdictional High Court in the case of CIT v. MIs. Industrial Security & Intelligence India Pvt. Ltd. [2015 (7) TMI 1063 - MADRAS HIGH COURT]. In view of the above judgement of jurisdictional High Court, this ground raised by the assessee is allowed subject to verification by AO.
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