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2017 (10) TMI 1470 - AT - Income TaxTP Adjustment - correctness of aggregation approach in benchmarking international transactions - HELD THAT:- Tribunal discussed the TP guidelines relating to aggregation of international transactions before granting relief to the assessee. The Tribunal also discussed ICAI guidelines on this issue before approving the aggregation approach of the assessee. Considering the covered nature of the issue, we are of the opinion that the issue in the present case is squarely covered and in favour of the assessee. Therefore, the grounds raised by the Revenue are dismissed. Provision for warranty - HELD THAT:- It is evident that the claim of the assessee on account of warranty provision is allowed by the Tribunal in assessee’s own case in the A.Y. 2003-04. Ld. Departmental Representative has not brought anything on record to controvert the above finding of the Tribunal. Therefore, we find that the order of CIT(A) is in tune with the decision of the Tribunal. Addition of “bad debts” - HELD THAT:- We find that the DRP has not appreciated the fact that the assessee complied with the condition of writing off of the debts in the books of account of the assessee as irrecoverable. They made an elaborate discussion distinguishing the Supreme Court judgment in the case of T.R.F. Ltd Vs. CIT [2010 (2) TMI 211 - SUPREME COURT] . In our view, the decision of DRP is required to be reversed on this issue considering the binding of judgments of Hon'ble Supreme Court (supra) read with Section 36(1)(vii) of the Act. - Appeal of the assessee is allowed.
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