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2016 (6) TMI 1253 - AT - Income TaxTPA - selection criteria for comparable - Held that:- The international transactions entered into by the assessee was in respect of data processing rendered to its AE. The assessee has benchmarked the international transaction of data processing, using Cost Plus Method (CPM) as the most appropriate method (MAM) to arrive at Arm’s Length Price (ALP). Thus companies functionally dissimilar with that of assessee need to be deselected from final list of comparable. Addition under section 14A read with Rule 8D - Held that:- Tribunal in assessee’s own case for assessment year 2008-09 has held A.O. has not recorded satisfaction as required by law, before invoking section 14A. It has not been pointed out by the A.O. as to how the computation of disallowance u/s 14A done by the assessee was not correct. No error or defect has been pointed out. Under these circumstances, we have to apply the proposition laid down by the jurisdictional High Court in the case of Maxopp Investments Ltd.[2011 (11) TMI 267 - Delhi High Court] and delete the addition made by the A.O.
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