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2016 (6) TMI 1321 - AT - Income TaxAddition on account of Arm’s Length Price adjustment - comparable selection criteria - Held that:- As gone through the material available on the record. In the present case, it is an admitted fact that complete data relating to the comparable selected by the assessee was not available at the time of making the transfer price study. However, the same are now available at the public domain. We, therefore, think it appropriate to restore this issue back to the file of the TPO/AO to be decided afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee. MAM selection - TPO applied the residuary profit split method as most appropriate method instead of TNMM method choosen by the assessee as most appropriate method - Held that:- As noticed that the TPO for the assessment year 2010-11 had considered the TNMM method as most appropriate method by keeping in view the Circular No. 6/2013 dated 29.06.2013 but it is an admitted fact that the said Circular was not in existence when the TPO passed the impugned orders for the respective assessment years i.e. assessment years 2007-08 to 2009-10, under consideration. However, he admitted while passing the orders u/s 92CA of the Act for the assessment year 2010-11 that TNMM is most appropriate method for determining the Arm’s Length Price. We, therefore, deem it appropriate to set aside this issue relating to the assessment years 2007-08 to 2009-10 to the file of the TPO/AO to decide as to what is the most appropriate method by considering the facts and the guidelines available in the form of circular. As regards to the issue relating to the comparables for which the information u/s 133(6) of the Act were obtained by the TPO and which were not confronted to the assessee, we are of the view that this issue also deserves to be set aside to the file of the TPO/AO for fresh adjudication in accordance with law. Additional ground relating to deduction u/s 10A of the Act was not before the TPO/AO. The said grounds are purely legal grounds and raised first time before the Tribunal, so this issue raised in the additional grounds is remanded to the file of the TPO/AO to be decided along with another assessment years under consideration.
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