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2023 (3) TMI 1090 - AT - Income TaxTP Adjustment - MAM selection - export of finished goods from Thane Plant by adopting internal TNMM - Contention of the Appellant before AO and DRP was that exports made to different geographical location to non-AEs could be considered to benchmark export sales to AEs by adopting internal TNMM method since the transactions undertaken with the AEs and Non-AEs were in the same industry, and had high level of similarity with respect to products, cost of goods sold, manufacturing processes, etcHELD THAT:- DRP erred in adopting the aforesaid reasoning given by the Appellant to include even the domestic sales made by the Appellant for benchmarking the export sales made to AEs from Thane Plant. Accordingly, we set aside the transfer pricing addition and direct the TPO/Assessing Officer to re-compute ALP of the international transaction of export of goods from Thane Plant by taking OP/OC of the export sales to non-AEs. In view of the aforesaid directions, Ground No. 1 raised by the Appellant allowed. TP addition - export of finished goods from Nagda Plant by adopting internal CUP method - HELD THAT:- We note that in identical facts and circumstances in the case of Firmenich Aromatics Production (India) Pvt. Ltd [2018 (11) TMI 862 - ITAT MUMBAI] held that CUP Method could not be adopted as most the appropriate method. In the present case the TPO has accepted application of Internal TNMM for transactions of 65% of exports from Nagda Plant. Therefore, we hold that internal TNMM should also be adopted for benchmarking the balance 35% of the export transactions pertaining goods from Nagda Plant. Accordingly, we set aside the transfer pricing adjustment and direct the TPO/Assessing Officer to re-compute ALP using internal TNMM. Unexplained expenditure and undisclosed income - Admission of additional evidence - HELD THAT:- The Appellant was not able to produce evidence before lower authorities due to paucity of time and partly for the reason that the information/evidence was also not in the knowledge/possession of the Appellant at the relevant time. Accepting the reasons failure to furnish this evidence before the Assessing Officer and DRP provided by the Appellant, we admit the additional evidence in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and remand issue raised to the file of Assessing Officer for adjudication afresh.
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