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2019 (11) TMI 1810 - AT - Income TaxTP Adjustment - years covered under APA - comparable analysis - Applicability of roll Back provisions - AR submitted that assessee has entered into advanced pricing agreement [APA] for assessment years 2014-15 to 2018-19 covering all international transactions undertaken by assessee during the said period and that years under consideration are not covered by said APA - AR also submitted that FAR analysis of trading segment for year under consideration is identical to years covered under APA and thus prayed for rollback same margin to be applied to the year under consideration as agreed in APA - HELD THAT:- Roll Back provisions are dealt with as per Rule 10MA of Income tax Rules 1962. We have perused APA dated 31/07/2018 for assessment years 2014-15 to 2018-19, between assessee and CBDT in respect of AE's most particularly mentioned in Appendix 1(a). In APA signed by assessee, there is no roll back provision for years under consideration. However, circumstances which provides for applying the rule, needs to be analysed. The transaction must be identical in terms of functions, risks assumed regarding international transaction must be same. Having regards to above discussion, we find it necessary to set aside the issue to Ld. TPO/AO to verify FAR of assessment years for which APA was entered and assessment years under consideration. Ld. AO/TPO shall compare international transaction for years under consideration and terms of APA and to compute ALP of transaction in accordance with law. Under such circumstances, additional ground raised by assessee becomes academic and therefore, we are not adjudicating the same. Appeals allowed for statistical purposes.
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