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2013 (9) TMI 632 - AT - Income TaxTransfer pricing adjustments - DRP order being non-speaking – Rejection of comparables selected by assessee – allowance of benefit of Añ 5 per cent. - Held that:- Reliance has been placed upon the similar case namely Evalueserve.com P. Ltd. v. ITO [2011 (11) TMI 111 - ITAT, DELHI], wherein it has been held that directions passed by the Dispute Resolution Panel under section 144C(5) are not speaking about what objections were raised by the assessee and how they have been found to be not acceptable. The Dispute Resolution Panel has simply observed that all the questions raised by the assessee have been answered in detail by the Transfer Pricing Officer and by the Assessing Officer in the draft order. The rejections of comparables are based on detailed reasoning and after applying reasonable filters. The denial of working capital adjustment as also capacity adjustment is based on cogent reasoning, use of current data has been found more appropriate and fresh search has been rejected as there is no valid reason. Similarly, the Dispute Resolution Panel has rejected the other grounds. Therefore, the order passed by the learned Dispute Resolution Panel is a non-speaking order not stating the objections raised by the assessee and the reasons have also not been given as simply the order of the Transfer Pricing Officer and the Assessing Officer are referred. In the present case, matter restored back to the file of the Dispute Resolution Panel to pass a speaking order stating all the objections of the assessee and disposing them by giving cogent reasons for adjudication of the objections of the assessee – Decided in favor of assessee for statistical purpose.
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