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2023 (2) TMI 109 - AT - Income TaxTP adjustment - Determining the Arm's Length Price of international transactions in respect of "advisory services" - HELD THAT:- As decided in assessee's appeal [2023 (1) TMI 1113 - ITAT PUNE ] for A.Y. 2009-10 assessee has sufficiently proved to have received "advisory services" from its group entity(ies) and the learned lower authorities have erred in law and on facts in rejecting the same in entirety. We, accordingly, delete the impugned adjustment in these peculiar facts and circumstances. The assessee succeeds in its first and foremost grievance. We further note that for academic purposes, the only distinction herein is stated that to be correctness of assessee's Comparable Uncontrolled Price "CUP" method is nowhere in dispute in A.Y. 2011-12, whereas in the preceding assessment year 2009-10, the Transfer Pricing Officer "TPO" had adopted the Transactional Net Margin Method ("TNMM). This is indeed coupled with the fact that his findings in para 25 page 23 have nowhere completely ruled out the assessee having actually availed services to "certain extent". Be that as it may, we adopt judicial consistency in the absence of any clinching distinction in both these assessment years involving the very issue of correctness of arm's length price adjustment in respect of advisory services. We accordingly delete the impugned transfer pricing adjustment. Disallowing of provision for slow moving inventory - HELD THAT:- Assessee's impugned claim pertains to its two units at Chennai and Ranjangaon out of which it had already filed its finance department's recommendations for Rs. 24,74,561/-. This is followed the assessee's detailed remarks regarding all these items involving a total sum of Rs. 56,96,434/-. And that it had already claimed Rs. 32,21,872/- in the earlier financial year. Learned counsel has further invited our attention to the assessee's detailed statements regarding its provision for slow moving inventories created from assessment years 2011-12 to 2015-16 vis-à-vis opening balances, reversals and closing balance; as the case may be. Faced with the situation, we quote hon'ble apex court's landmark decision Chainrup Sampatram [1953 (10) TMI 2 - SUPREME COURT] that such a liability by way of provision would indeed be recognized at the first sign of probability itself and delete the impugned disallowance - The assessee succeeds in its instant third substantive ground thereof. Ad hoc disallowance of travelling and conveyance expenses - Assessing Officer had rejected 5% of the assessee's claim - CIT-A restricted to Rs. 1,00,000/- only on account of its alleged failure in filing of the relevant details - HELD THAT:- We hardly see any reason to interfere with the impugned disallowance in very terms. The assessee fails in the instant last substantive ground.
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