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2017 (12) TMI 1622 - AT - Income TaxTPA - wrong selection of MAM - Assessee had adopted an overall entity based Transactional Net Margin Method (TNMM) to determine ALP of its international transactions - TPO adopted a transaction-by-transaction approach considering segmental profitability as per AS 17 - According to assessee, it has appointed the new law firm who after analysis of the original T. P study has advised the assessee to adopt transaction by transaction method, in place of entity level bench marking approach and e, it should not be penalized for the error/mistake which occurred in the first place, because of wrong legal advice of erstwhile attorneys Held that:- We note that the Hon’ble Supreme Court in N. Balakrishnan Vs. M. Krishnamurthy (1998 (9) TMI 602 - SUPREME COURT OF INDIA) wherein a similar case where there was a delay of 883 days because of the mis-handling the case by the Advocate of the petitioner, the Hon’ble Supreme Court condoned the delay taking note that the petitioner cannot be faulted due to the latches of the lawyer. Similarly, for substantial justice, the assessee should not suffer because of earlier legal advice which the assessee realizes to be wrong and ready to correct. Therefore, in the interest of justice and fair play, the transfer pricing adjustment ordered by the TPO is set aside with a direction to re-adjudicate only on the issue on which the TPO has found the assessee’s transaction not at arms’ length, which is to be done afresh after taking into consideration, the aforesaid documents filed before us for A.Y 2011-12 and DRP for AY 2012-13 and after hearing the assessee.
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