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2022 (3) TMI 346 - AT - Income TaxTP Adjustment - selection of MAM - TPO has rejected RPM for the reason that the details and information necessary for computing margins of comparable companies was not available - HELD THAT:- The absence of details and information can be no ground to reject RPM as the MAM, as the TPO has powers to call for the necessary details from the comparable companies to ascertain the Gross Profit margin that has to be compared under RPM. Accordingly, we are of the view that RPM is the most appropriate method in the facts and circumstances of the case. Accordingly, we direct the AO/TPO to adopt Resale Price Method as most appropriate method and determine the ALP of the transactions accordingly. We are of the view that the facts and circumstances, we set aside the order of the CIT(A) and direct the AO/TPO to adopt RPM as the MAM and determine the ALP of the transactions accordingly after affording assessee opportunity of being heard. Adding back the provision for bonus by treating the same as unascertained liability, while computing the 'book profits' under section 115JB - HELD THAT:- We are of the view that the provision for bonus as well as provision for long term service are both ascertained liability and cannot be added to book profit under section 115JB of the Act. We hold and direct accordingly.
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