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2015 (7) TMI 492 - AT - Income TaxTransfer pricing adjustment - CIT(A) in confirming the order of the Assessing Officer (AO) as regards most appropriate method for computation of arm’s length price (ALP) and the comparables selected by the AO on the basis of product comparability as against the functional comparability adopted by the assessee - Held that:- As far as the revenue’s appeal against the deletion of Vimta Labs Ltd., from the list of comparables is concerned, though the learned Departmental Representative has relied upon the order of the AO, we find that the TPO has, in the remand report (which is reproduced at 14.2.1 of the order of the CIT(A)) has stated that Vimta Labs Ltd., was into contracting, research and technical activity and therefore is functionally dissimilar to the assessee. Since the TPO himself has agreed that the said company is not comparable to the assessee-company, we do not see any reason to interfere with the order of the CIT(A) on this issue and the revenue’s ground of appeal on this issue is rejected. As regards the basis comparability adopted by the TPO i.e. the product comparability as against the functional comparability adopted by the assessee is concerned, it is stated by the learned counsel for the assessee that the very same issue had arisen in the case of related party to the assessee i.e. M/s.GE BE Pvt. Ltd. wherein issue is decided in favour of assessee. Depreciation on plant and machinery purchased from Elpro International Ltd. - Held that:- This issue had first arisen in the assessment year 1998-99 and had come up to the Tribunal for adjudication and the Tribunal had set aside the issue to the AO for verification of the claim of the assessee. It is submitted by the learned counsel for the assessee that the AO had made disallowance of depreciation in the orders passed u/s 143(3) r.w.s. 254 for the assessment years 1998-99 and 1999-2000 and the appeals against the same are pending before the CIT(A). He submitted that all the details were furnished before the CIT(A) for the assessment years 1998-99 and 1999- 2000 and therefore this issue is to be remanded back to the file of the CIT(A) to give effect to the orders of the CIT(A) for the assessment years 1998-99 and 1999-2000 as this is a subsequent year and the orders for the assessment years 1998- 99 would have consequential effect for the relevant assessment year also. We, therefore, remand this issue to the file of the CIT(A) with a direction to give consequential effect to the order of his predecessor for assessment year 1998-99 onwards.
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