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2015 (2) TMI 316 - AT - Income TaxTransfer pricing adjustment - addition of ₹ 42,02,000/ - made on account of arm's length price - Held that:- The reasons given by the revenue authorities for arriving at such conclusion was that a comparison of a risk profile of a facultative reinsurance business could not be established on the basis of documents in comparison to the treaty reinsurance. On this issue, we also note that assessee was not provided an opportunity to furnish the requisite evidence in the form of copy of contracts before the TPO. In view of these facts, we hold that the documents submitted along with this application under Rule 29 of the ITAT Rules, 1963 which are copies of illustrative contract/cover notes pertaining to the facultative reinsurance shall be necessary in comparative analysis of the risk factor in the reinsurance under treaty reinsurance and facultative reinsurance. In view of these facts, we admit these additional evidences furnished by assessee and find it appropriate to remit this issue to the file of the Assessing Officer for deciding de novo. - Decided in favor of assessee for statistical purposes. Disallowance of deduction claimed u/s 37 - Held that:- We considered it necessary in the light of the arguments advanced before the Bench that the AO shall examine the position of double taxation vis-à-vis the amounts which already stood offered to tax u/s Fringe Benefit Tax. The past position can be considered but simply because it was not challenged in the earlier year is not a good enough reason to resort to ad hocism the AO is directed to ascertain the correct facts and then decided the issue in accordance with law by way of speaking order after giving the assessee a reasonable opportunity of being heard. We restore back this issue to the file of the Assessing Officer. - Decided in favour of assesssee for statistical purposes. Addition made under Section 14A - profits and gains of any business of insurance - Held that:- In view of provisions of Section 44, read with Rule 5 of the First Schedule, the provisions of Section 14A are not applicable in the appellant's case - Decided in favour of assesssee.
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