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2014 (5) TMI 69 - AT - Income TaxTransfer pricing adjustment - Manufacturing assembling of automotive seating systems and interior, and in the design and development of automotive seating systems and interiors Held that:- As decided in assessees own case for the previous year, the respective stand and the material available on record qua the cost allocation issue which is the only issue in 2005-06 and 2006-07 assessment year set aside - The issue as such is restored back to the TPO with the direction to decide the same afresh in accordance with law there was merit in the arguments advanced that the transfer pricing issues being still new as such not only qua the representation but even qua the orders there is scope of tremendous improvement - The issue which is a continuous issue arising in every year because of the nature of the transaction to our minds cannot be allowed to be glossed over for want of representation - Being a continuous issue over the years full and correct facts need to be taken into consideration - The order has ignored significant material findings of the TPO the matter is remitted back to TPO for fresh adjudication Decided against Revenue. Cost allocation Held that:- While admitting the fresh evidence sought to be relied upon, the issue of merit of the evidence sought to be placed on record open to the TPO for his consideration is left open thus, the matter is remitted back to the TPO for fresh admission of the evidences as it is necessary to consider the relevance and impact of the same for deciding the issue Decided in favour of Revenue. Cost recharges Held that:- The appeal for the year has been segregated as it is stay granted appeal accordingly paying heed to the stand of the CIT - the issue is restored to the TPO with the direction to decide the same in accordance with the view taken in 2007-08 assessment year Decided in favour of Revenue. Disallowance of claim as revenue expenses Case law applied without appreciating the facts - Held that:- The DRP without discussing the facts has decided the issue relying upon judgments which proceed on a specific set of facts - the approach followed by the DRP cannot be upheld - Before applying the case law it is first primarily and necessarily important to set out the full and correct facts which necessarily require the marshalling of relevant facts - From the facts on record it is necessary to address whether the project ultimately translated into a unit being setup or was the project abandoned - On this aspect there is no discussion in the orders nor has the assessee considered it necessary to address this aspect - the ratio of judgements applies to a given set of facts and without setting out the material facts the principles laid down on the issue by various Courts would have no meaning or relevance - As each judgements operates on the facts of its case thus, the matter is remitted back to the AO for re-adjudication Decided in favour of Assessee.
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