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2020 (8) TMI 929 - AT - Income TaxTP adjustment - APA for international transactions - arm’s length in terms of provisions of section 92C - assessee has adopted the transaction by transaction approach which was disregarded by the TPO by aggregating all transactions and applying TNMM method and made a total adjustment - DRP upheld the application of TNMM on the basis that the appellant had adopted TNMM in the previous years and margins of the comparable companies were recomputed - HELD THAT:- Tribunal, in a series of decisions, have consistently held that even if the year under dispute is not covered by APA, if the FAR is same, APA should be adopted for international transactions for the year under dispute. Accordingly, we direct TPO to consider the FAR of the year under consideration with FAR of the years in APA. The assessee is directed to produce all necessary documents in compliance with APA and the AO/TPO is directed to decide the issue in light of APA in respect of international transactions in dispute in the present appeal and adopt the same methodology which has been directed to be adopted in the APA.
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