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2018 (8) TMI 1942 - AT - Income TaxTP Adjustment - Adoption of method prescribed under section 92C(1) - HELD THAT:- We have noted that the Assessing Officer has not computed the ALP by adopting the method prescribed under section 92C(1). The Assessing Officer relied upon the order of Assessment Year 2008-09. The Assessing Officer has not made any attempt to select unrelated party transaction for making a base to bench marking international transaction. The Assessing Officer relied solely on the order of Assessment Year 2008-09 on his observation that no details was furnished by assessee despite repeated notices. Considering the factual matrix of the case as the Assessing Officer has not adopted the method prescribed under section 92C(1), therefore, we deem it appropriate to restore this ground of appeal to the file of Assessing Officer to re-compute the ALP afresh. Needless to say that Assessing Officer shall provide opportunity to the assessee before passing the order in accordance with law. The assessee is also directed to furnish all documentary evidence to substantiate their contention. Disallowance of society charge and property tax - HELD THAT:- Disallowance of expenses was on the basis of order of earlier years. Before us, the ld. AR of the assessee vehemently submitted that the expenses were incurred as per the agreement/understanding between the lesser and the lessee/assessee. Considering the factual matrix of the case, principally, we are of the view that the expenditure made on account of society and property tax are allowable expenses, if the payment is made under contractual obligation with the lesser/owner and the lessee/assessee. Therefore, the Assessing Officer is directed to verify the fact, if the assessee has incurred these expenses with the consent /agreement of lesser and allowed the appropriate relief to the assessee in accordance with law.
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