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2014 (4) TMI 556 - AT - Income TaxValidity of confirmation of order u/s 92CA(3) of the Act – Transfer pricing adjustment of international transaction – No material or cogent reason for rejecting the economic analysis – Determination of Arm’s length price - Application of TNMM or CPM – Held that:- Once assessee has given a methodology for working of ALP on selection of a particular method supported by appropriate comparables, the working can be dislodged by TPO on the basis of cogent reasons and objective findings - except theoretical assertions and generalized observations, no objective findings have been given to come to a reasoned conclusion that assessee’s adoption of CPM for manufacturing segment and RPM for trading segment was Factually and objectively not correct - the rejection of methods by TPO as adopted by assessee is bereft of any cogency and objectivity - it is a work of guessing and conjectured - the TNMM method applied by the TPO suffers from the same inherent aberrations - Assessees methods of CPM and RPM respectively worked by applying appropriate comparables is to be upheld - Thus the ALP working returned by the assessee is upheld – Decided in favour of Assessee. Corporate additions – Held that:- Though AO may insist for a revised return the appellate authority has been vested with powers to allow the legitimate claims of the assessee even on the basis or revised computation – the AO is directed to verify the revised computation claim of the assessee – Decided in favour of assessee.
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