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2014 (2) TMI 651 - AT - Income TaxTransfer pricing addition on account of Arms's Length Price - Held that:- For this year also, the assessee adopted Profit Level Indicator (PLI) of cash profit to sales by applying transactional net margin method (TNMM) in respect of the Tooling Division. The Ld. CIT(A) deleted the addition by giving the same reason as were given by him for the preceding year. No difference in the facts and circumstances for the instant year has been shown vis-à-vis that for the assessment year 2003-04. We have allowed this ground of the Revenue for the immediately preceding year. Following the view taken for such earlier year, this ground is allowed. Disallowance of deduction u/s 80HHC of the Act – Held that:- The decision in Ajanta Pharma Ltd. Vs CIT [2010 (9) TMI 8 - SUPREME COURT ] followed - `Clause (iv) of the Explanation to s. 115JB covers full export profits of 100 per cent as "eligible profits" and the same cannot be reduced to 80 per cent by relying on s. 80HHC(1B) - 100% of the export profit should be allowed to be reduced from the book profits for the purpose of computation u/s 115JB - thus, the order on this issue set aside and the matter remitted back to the AO for fresh adjudication. Deletion on account of transfer pricing adjustment made by the TPO – Held that:- The assessee adopted `Cash profit to sales' as PLI in respect of Tooling Division, which was not accepted by the TPO, who proceeded to compute ALP with the PLI of `OP to sales' – thus the addition of ₹ 1.11 crore restored – Decided partly in favour of Assessee.
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