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2015 (10) TMI 942 - AT - Income TaxTransfer Pricing adjustment - adjustment made on account of accelerated depreciation - whether while computing margins of the comparable companies, in the facts of the present case, any adjustment could be made on account of such assets, which are not owned by the assessee - CIT(A) directed the Assessing Officer not to make the depreciation adjustment on account of un-common assets between the assessee and comparable companies Held that:- Merely because, one company does not have the said assets, it cannot be said that it had not incurred certain expenditure relatable to the same. We find that similar proposition on account of depreciation arose before the Delhi Bench of the Tribunal in EXL Service.Com (India) Pvt. Ltd. Vs. ACIT [2014 (12) TMI 894 - ITAT DELHI] wherein it was held that no adjustment is to be made on account of uncommon assets. In view thereof, we uphold the order of CIT(A) in holding that no adjustment is to be made in the hands of the comparable companies on account of assets not owned by the assessee. The learned Authorized Representative for the assessee has furnished on record an order giving appeal effect to the order of CIT(A) by Assessing Officer, vide order dated 28.02.2013, in which the margin of set of comparable companies was adopted at 15.75% as against the PLI of the assessee at 10.52% and the same has been found to be at arm's length i.e. +/- 5% range prescribed under the proviso to section 92C(2) of the Act. It may be clarified here that initially, the TPO had adopted the PLI of the assessee at 10.33%, but while computing adjustment on account of international transaction, the PLI was taken at 10.52% which is to be adopted in the hands of the assessee. In view thereof, we dismiss the grounds of appeal raised by the Revenue. In view of the concession of the learned Authorized Representative for the assessee that after giving effect to the order of CIT(A), no further adjustment is to be made in the hands of the assessee on account of an international transactions. Consequently, we dismiss the appeal filed by the assessee being academic. In view thereof, both the appeals of the assessee and the Revenue are dismissed.
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