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2018 (8) TMI 2030 - AT - Income TaxTP Adjustment - selection of MAM - TPO rejecting CUP as the most appropriate method (MAM) to determine the arm's length price of the international transactions pertaining to provision of engineering design services to its AE as selected and applied by the appellant - HELD THAT:- As relying on own case [2018 (6) TMI 1752 - ITAT PUNE]as find merit in the plea of assessee that hourly rates charged by it in providing specialized services to its associated enterprises can be the basis for verifying its stand as to whether the services provided by the assessee to its associated enterprises were at arm's length. However, the stand of Assessing Officer / TPO in rejecting the said plea of assessee was the tainted transactions vis-à-vis costs incurred by the assessee both for associated enterprises and non-associated enterprises. In the totality of the above said facts and circumstances, where the stand of assessee has not been looked into by the TPO and has been brushed aside, we in the interest of justice, direct the Assessing Officer / TPO to determine arm's length price of international transactions undertaken by the assessee by applying most appropriate method i.e. internal TNMM method of man hourly rates. The assessee has also asked for various other adjustments for carving out differences which may also be looked into by the TPO, who shall decide the issue after affording reasonable opportunity of hearing to the assessee and determine arm's length price of international transactions. Addition in respect of excess provision for interest on service tax - contention of the assessee is that this amount has been offered to tax in the subsequent assessment year when the actual amount of service tax liability got materialized - HELD THAT:- Without going into the merits of the addition, we deem it appropriate to restore this issue to the file of Assessing Officer for verification. If the assessee has already offered the amount to tax in the subsequent assessment year the Assessing Officer is directed to grant relief to the assessee in assessment year under appeal as the same would amount to double taxation. The Assessing Officer before deciding this issue shall grant opportunity of haring to the assessee, in accordance with law.
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