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2016 (2) TMI 874 - AT - Income TaxTransfer pricing adjustment - computation of ALP based on interim and unaudited financial statements - Held that:- We are of the considered opinion that we have to restore the entire issue of determination of ALP to the file of the A.O. for fresh adjudication in accordance with law. When audited financial statements are available in the public domain, computation of ALP based on interim and unaudited financial statements cannot be accepted. A fresh exercise has to be done based on the audited financial statements of each of the parties for all the segments/international transactions. Regarding the plea of the assessee to direct the A.O. to apply the Second Proviso to S.92(2) of the Act and to exclude comparables having related party transactions in excess of 25% and to direct the AO to grant working capital adjustment, we hold that the assessee would be free to take up any legal argument or contentions before the A.O. The law with respect to transfer pricing has developed over the period of time and the assessee/revenue should not be deprived of taking benefit of the latest legal developments on any issue. The AO is directed to consider all these fresh contentions and arguments raised by the assessee and dispose of the same and arguments in accordance with law. The AO/TPO shall afford adequate opportunity to the assessee. - Decided in favour of assessee for statistical purposes
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