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2017 (12) TMI 1636 - AT - Income TaxTPA - benchmarking of transaction through the combined transaction approach by applying of TNMM or CUP - Held that:- AO/TPO has not rebutted the basis adopted in the TP report for adopting TNMM and they failed to indicate the reasons for rejecting the TNMM as the most appropriate method. Further, they have been incorrectly applied the CUP method without bringing out any comparable on record. It is contrary to Rule 10B(2) of the I.T. Rules, 1962. Similarly, it is also his arguments that the assessee had filed voluminous documents to establish that the IGS were needed by the assessee and are not duplicative in nature. All those details filed before the TPO/DRP were completely ignored. It is also his argument that the Department cannot question the commercial expediency of the transactions. In our opinion and considering the totality of the facts of the case, the matter requires a fresh adjudication at the level of the Assessing Officer/TPO in the light of the various evidences produced before them and in the light of the decisions relied on by the assessee before us. We, therefore, restore the entire issue to the file of the Assessing Officer/TPO with a direction to decide the issue afresh in accordance with law after giving due opportunity of being heard to the assessee. We hold and directly accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. Assessee appeal allowed for statistical purposes.
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