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2023 (3) TMI 962 - AT - Income TaxTP Adjustment - reference made to learned TPO under clause (i) to section 92BA - addition made in respect of the Specified domestic transaction and also in respect of international transaction - HELD THAT:- We noticed that the effect of omission of clause (i) in section 92BA relating to the specified domestic transaction was examined by the Coordinate Bench in the case of Edelweiss Rural & Corporate Services Limited (1827989) and the Tribunal, by following the decision rendered in the case of Texport Overseas Pvt. Ltd. (2017 (12) TMI 1719 - ITAT BANGALORE] held that the reference made to learned TPO under clause (i) to section 92BA is not valid and consequently transfer pricing adjustment made in respect of the Specified domestic transaction is liable to be deleted. We direct the Assessing Officer to delete the transfer pricing adjustment made in respect of specified domestic transaction. Addition u/s 40A - As submitted by DR, the Specified Domestic transactions entered with the related parties are required to be examined afresh in terms of section 40A(2)(a) of the Act. Accordingly, we restore this issue to the file of the Assessing Officer with the direction to examine the same in terms of section 40A(2)(a) of the Act. TP adjustment in respect of international transactions entered with AE - Hon'ble Bombay High Court in the case of CIT Vs. Thyssen Krupp Industries Pvt. Ltd [2015 (12) TMI 1076 - BOMBAY HIGH COURT] has held that the transfer pricing adjustment is mandated in respect of international transaction entered with the related parties, meaning thereby, there is no requirement of making any adjustment in respect of transactions entered with unrelated parties. Accordingly, we direct the Assessing Officer/TPO to restrict the transfer pricing adjustment on the international transactions entered with AEs only.
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