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2017 (12) TMI 421 - AT - Income TaxTPA - MAM Selection - comparability analysis - CUP v/s TNMM - Held that:- On a careful perusal and consideration of the TPO’s order under Section 92CA of the Act, we find that, as contended by the learned Authorised Representative, the TPO adopted CUP Method in place of TNMM adopted by the assessee without rendering any finding or reasoning as to why TNMM was rejected and CUP Method was adopted. The TPO has merely stated that TNMM is not the appropriate method and that CUP is the appropriate method. We also find that the TPO has adopted certain rates for offshore and on-site work without assigning any reasons as to how these rates are applicable to the assessee's case, which is sine quo non for applying CUP method. We also notice that the TPO has adopted TNMM as the MAM in the subsequent assessment year 2005-06 in the case on hand, as seen from the documents. This, however, cannot be the reason or basis for deciding the MAM in the year under consideration. Taking into consideration the facts and circumstances of the case as discussed from paras 4.1 to 4.8.2 of this order (supra), we deem it appropriate to set aside the orders of the authorities below and remand / restore the entire issue of TP comparability analysis to the file of the TPO/A.O. to decide the matter afresh, including the determination of the MAM and the comparable companies
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