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2018 (5) TMI 252 - AT - Income TaxAdmission of additional evidence - Held that:- We set aside the impugned order of the learned CIT(A) refusing to admit the additional evidence filed by the assessee and restore the matter to the file of the AO to decide the relevant issues afresh after giving proper and sufficient opportunity to the assessee to produce the relevant books of account and other record. We also direct the assessee to produce the books of account and other record as may be required by the AO for the purpose of completing the assessment afresh on the relevant issues and extend full cooperation to him. The relevant grounds of the assessee’s appeal are accordingly treated as allowed for statistical purposes. TPA - comparable selection criteria - Held that:- Assessee is into providing Chip design / software development services, this companies functionally dissimilar with that of assessee need to be deselected from final list. CIT(A) adopting the arm’s length margin at 14.92% as against 18.5% adopted by the TPO - Held that:- CIT-A rejected the computation of arm’s length margin of 18.5% made by the TPO erroneously on the basis of financial data of earlier two financial years and proceeded to determine the arm’s length margin afresh on the basis of second set of comparables selected by the TPO. While disposing of the appeal of the assessee, we have already approved this approach adopted by the learned CIT(A) in principle. Consequently, we find no merit in the appeal of the Revenue and dismiss the same.
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