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2014 (5) TMI 739 - AT - Income TaxAddition to total income – Transfer pricing adjustment – International transaction with AE – Export of bathrobes – Held that:- Following Welspun Zucchi Textiles Ltd. Versus Assistant Commissioner of Income-tax-2(3), Mumbai [2013 (9) TMI 336 - ITAT MUMBAI] - the DEPB benefit was not taken into consideration by the AO/TPO for the purpose of working out the profit margin of the assessee whereas such benefit was taken into account in the comparable cases while working out their profit margin as found by the CIT(A) – thus, the matter is remitted back to the AO for re-computation of the profit margin of the assessee company after taking into consideration the DEPB benefit as a part of its turnover and to delete the addition made by way of TP adjustment if the difference between the profit margin so computed and the average profit margin of the comparables is found to be within the safe harbor limit of 5% as claimed by the assessee – Decided in favour of Assessee. Disposal of appeal of the CIT(A) u/s 143(3) of the Act – Directions issued by DRP u/s 144C of the Act – Held that:- The order of assessment passed u/s 143(3) of the Act in pursuance of the directions of the DRP is not considered as an order appealable before the CIT(A) w.e.f. 1-10-2009 as per the amendment made in the relevant provisions of section 246-A of the Act by the Finance (No.2) Act, 2009 - The appeal filed by the assessee against the order passed by the AO u/s 143(3) of the Act on 30-9-2010 in pursuance of the directions of the DRP was not maintainable before the CIT(A) and the CIT(A) clearly exceeded his jurisdiction in entertaining and disposing of the appeal filed by the assessee – the order of the CIT(A) in disposing of the appeal filed by the assessee against the order passed by the AO u/s 143(3) in pursuance of the directions of the DRP is not valid in the eye of law and the same is liable to be cancelled – Decided in favour of Revenue.
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