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2018 (3) TMI 1862 - AT - Income TaxTP Adjustment - assessee has not prepared segmental accounts initially and hence it could furnish only unaudited segmental accounts before TPO - HELD THAT:- TPO has rejected the same doubting about its reliability. Subsequently, the assessee has prepared proper segmental accounts and got it audited and furnished the same before the learned CIT(A). We notice that the CIT(A) has refused to admit the same for technical reasons. As held by the Coordinate Bench in the case of Smt. Avan Gidwani [2016 (4) TMI 809 - ITAT MUMBAI] the additional evidences furnished by the assessee in the form of audited segmental accounts may be vital documents that may be required to adjudicate the issue in judicious matter, particularly in view of the fact that the TPO has changed the methodology altogether to determine the ALP of international transactions. We admit the additional evidences. Since, the issue is required to be examine afresh, as per the plea of learned DR, we restore the issue relating to determination of arm’s length price to the file of Assessing Officer/TPO for examining it afresh by duly considering the additional evidences furnished by the assessee. After hearing the assessee, they may take appropriate decision in accordance with the law. TP adjustment required to be made at entity level or to be restricted with the transactions entered between AE - HELD THAT:-This issue has since been decided in the case of CIT Vs. M/s. Thyssen Krupp Industries India P. Ltd. [2015 (12) TMI 1076 - BOMBAY HIGH COURT] wherein it was held that the adjustments should be restricted to transactions between the parties. CIT(A) has not adjudicated this issue. Since we have restored the matter relating to determination of arm’s length price to the file of the AO/TPO, we prefer to restore this issue also to them. Deduction of foreign exchange loss on revaluation of debtors/creditors and advances/losses balances as at the year end - HELD THAT:- Since facts relating to the claim of the assessee are already available on record, we admit the additional ground raised by the assessee. Since the same requires examination at the end of the Assessing Officer, we restore the same to the file of the AO with the direction to examine the same by duly considering accounting policy consistently followed by the assessee and take appropriate decision in accordance with law.
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