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2021 (2) TMI 168 - AT - Income TaxUpward adjustment to the arm’s length price of international transactions - Non giving any finding in respect of the action of TPO in exclusion/inclusion of comparables - HELD THAT:- Having accepted TNMM and aggregation of the nature of transactions involving manufacturing segment the only contention remains for our consideration whether contention to consider the exclusion and inclusion of comparables in determining the ALP of the international transactions in manufacturing segment. DR, Shri Shivraj Morey also submitted that neither AO/TPO/CIT(A) could not give any finding in respect of inclusion or exclusion of comparables. Therefore, as observed above, we deem it proper to remand the matter to the file of TPO for determining the ALP of international transactions in manufacturing segment. The assessee is liberty to file evidences, if any, in support of its contentions. The TPO shall afford reasonable opportunity for the assessee and decide the issue of manufacturing segment as indicated above. Thus, ground No. 1 raised by the assessee is allowed for statistical purpose. Addition u/s 43B - Disallowance of provision for management incentive performance reward - CIT(A) held the said bonus is payable to the higher management employees in relation to the services rendered by them and it is covered u/s. 36(1)(ii) of the Act r.w.s. 43B - HELD THAT:- Similar issue on same identical facts in assessee’s own case this Tribunal for A.Y. 2009-10 by placing reliance on the decision in the case of Shriram Piston and Rings Ltd.[2008 (4) TMI 273 - DELHI HIGH COURT] held the payment under the good work reward does not constitute bonus within the meaning of section 36(1)(ii) of the Act and it is allowable as normal business expenditure u/s. 37 - the order of CIT(A) in confirming the disallowance u/s. 43B of the Act made by the AO is required to be deleted. Thus, ground No. 2 raised by the assessee is allowed.
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