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2021 (3) TMI 980 - ITAT DELHITP Adjustment - Assessee applied Transactional Net Margin Method (TNMM) with Operating Profit/Operating Cost (OP/OC) as Profit Level Indicator (PLI) as the Most Appropriate Method (MAM) - adoption of TP analysis made by the Revenue Department in the earlier years - comparability - HELD THAT:- CIT(A) under the garb of "rule of consistency" adopted the TP analysis made by the TPO and accepted by the ld. CIT(A) in taxpayer's own case for AY 2010-11 without examining the legality of the TP study conducted by the taxpayer finding its international transactions at arm's length and TP analysis of the TPO vide which he has adopted the internal comparables and proposed an adjustment of ₹ 1,39,87,736/-. This method of TP analysis is unheard of as every assessment year is required to be examined independently to reach the logical conclusion to determine the ALP of international transactions. Merely because of the fact that during the year under consideration, there is no change in the business model of the taxpayer and the services rendered are identical, there is no statutory mandate to adopt the TP analysis made by the Revenue Department in the earlier years in order to make the adjustment in the subsequent years. In these circumstances, we are of the considered view that passing such an order on the basis of conjectures and surmises is in contravention of the provisions contained in Rule 10B (2) of the Income-tax Rules, 1962. Consequently, impugned order passed by the ld. CIT(A) is set aside and file is remitted back to the ld. CIT(A) to decide afresh after providing an opportunity of being heard to the taxpayer. The appeal filed by the taxpayer is hereby allowed for statistical purposes.
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