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2017 (11) TMI 1783 - AT - Income TaxALP adjustment on protective basis - adjustment in respect of AMP expenses - HELD THAT:- There is no dispute that the application of bright line test, for making ALP adjustments in respect of the AMP expenses, is held to be unsustainable in law by Hon’ble jurisdictional High Court, and the TPO himself states so in so many words. - it is not, cannot be, open to us to disregard the binding judicial precedents and uphold the application of bright line test, for determining the ALP adjustment in respect of AMP expenses, merely because a binding judicial precedent from Hon’ble jurisdictional High Court has been challenged by the revenue authorities before the Hon’ble Supreme Court. The very concept of protective addition is relevant only when an income is to be added in the hands of more than one taxpayer, in a situation in which there is an element of ambiguity as to in whose hands the said income can be rightly brought to tax. That’s not the case before us. - the concept of ‘protective assessment’, as is known to the income tax law, has no application this case - Additions deleted. Set off of the brought forward business losses - HELD THAT:- Assessee has claimed set off of the loss of ₹ 26,25,85,933 incurred in the assessment year 2012-13 which could not have been set off for the prior years, and the only year following the said assessment year is the year before us. It is also pointed out that the ALP adjustment, in respect of AMP expenses by applying the bright line test (BLT), which is now decided in favour of the assessee. While learned Departmental Representative did not really address on all these aspects, he fairly agreed to our suggestion that the matter is required to be examined afresh by the Assessing Officer in the light of outcome of the appellate proceedings for the other assessment years as also by way of a speaking order dealing with the specific contentions of the assessee - remit the matter to the file of the Assessing Officer for fresh adjudication
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