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2022 (3) TMI 1491 - ITAT MUMBAITP adjustment - Purchase of finished goods and payment of Technical Administrative Fees to its Associated Enterprise - CIT(A) directing the AO/TPO to do the exercise of fresh benchmarking by treating the assessee as Trader - HELD THAT:- In the present case, it is not disputed that the relevant assessment year is the first year of operation of the assessee. From the financial statements, forming part of the paper book, it is evident that the assessee only earned Rs.9,16,35,833, from sale of traded goods and Rs.4,16,78,419 from commission income during the relevant financial year. The manufacturing license dated 16.07.2014, taken note by the CIT(A), also justifies the claim of the assessee as the trader during the relevant assessment year. In the present case, it is also not being denied by the Revenue that the TPO has accepted the assessee as a trader for assessment year 2013–14 and 2014–15. Thus, we are of the view that the assessee has rightly been characterized as a trader by the CIT(A). Accordingly, we deem it appropriate to restore the matter to the TPO/AO to undertake fresh benchmarking of the international transaction pertaining to “purchase of finished goods" by considering assessee as a trader and to this extent we endorse the findings of the CIT(A). Since we are remanding the issue to the TPO/AO for conducting a fresh benchmarking of aforesaid international transaction, which causes no prejudice to the interest of the Revenue, the infirmities pointed out by the learned D.R. in the order passed by the CIT(A), during the course of hearing, becomes academic in nature in the present case. Appeal by the Revenue is dismissed.
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