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2020 (11) TMI 337 - AT - Income TaxTP Adjustment - adjustments made under the licensed manufacturing segment being exchange fluctuation, bank charges, interest charges, management fee - HELD THAT:- In the show cause notice issued to assessee by Ld. TPO under section 92CA, Ld. TPO failed to follow the due process of law in respect of proposing comparables for computing the ALP of international transaction in manufacturing segment. Ld. TPO is therefore, directed to issue show cause notice with proposed comparables in accordance with law. Also, in respect of bank charges, interest charges, management fees assessee should establish categorically based on cogent materials/evidences of how it should not be considered as operating for the purposes of computing margin of licensed manufacturing segment. Assessee is therefore directed to file all relevant documents/evidences/information necessary to establish its claim in respect of aggregation/segregation of the costs alleged in the order passed by Ld. CIT(A)/Ld. TPO. Assessee is also directed to file its response to various comparables proposed by Ld. TPO. Ld. TPO shall then pass a detailed order considering all the material evidences placed by assessee and compute the margin in accordance with law. Remand the issue to Ld. AO/TPO for de novo assessment as per Transfer Pricing provisions in accordance with law. Grounds raised by assessee and revenue stands allowed for statistical purposes.
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