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2023 (4) TMI 1296 - AT - Income TaxTP adjustment - resultant effect of omitted clause (i) of section 92BA with effect form 01/04/2017 - DR relied on the decision of Maari Multi Trading Pvt Ltd [2023 (2) TMI 1256 - ITAT MUMBAI] wherein Tribunal has, though deleted the TP adjustment made, has remitted the issue back to AO with a direction to re-adjudicate the issue claim of expenditure incurred in respect of the transactions with AE and the clause (b) of sub section (2) to section 40A - HELD THAT:- We notice that the Delhi Bench of the Tribunal in the case of Yorkn Tech Pvt Ltd [2021 (8) TMI 1374 - ITAT DELHI] as held Clause (i) of Section 92BA did not come into operation whenever any action has been taken especially after such omission. Accordingly, we hold that no Transfer Pricing Adjustment can be made on a domestic transaction which has been referred to by the Assessing Officer after the omission of the said clause by the Finance Act, 2017 even though transaction has undertaken in the Assessment Year 2016-17. We also notice that the co-ordinate bench in the case of Maari Multi Trading Pvt Ltd vs ACIT [2023 (2) TMI 1256 - ITAT MUMBAI] has also deleted the TP adjustment by relying on the decision of Texport Overseas (P.) Ltd [2019 (12) TMI 1312 - KARNATAKA HIGH COURT] With respect to the contention that the issue should be remitted back to the AO to examine the impugned addition from the perspective of section 40A(2)(b), we notice that the AO, considering the volume of SDT has made the reference to the TPO and has not recorded any adverse finding with regard to the impugned transactions. We, therefore, see no reason to remit the issue for reexamining the impugned transactions from the perspective of section 40A(2)(b) and accordingly we see no merit in the claim of Revenue. Appeal of the assessee is allowed.
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