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2023 (5) TMI 107 - AT - Income TaxTP Adjustment - TPO rejected the aggregation approach followed by the assessee and benchmarked the transactions separately - AO passed the the draft assessment order incorporating the above adjustment - DRP on its own enhanced the adjustment made in the sale of finished goods products by stating that the TPO has considered only the transactions with AE whereas the transactions have to be considered in total - HELD THAT:- AO has, in the final assessment order retained the TP adjustment at the same amount without considering the above directions of the DRP. The final assessment order passed by the AO is not in accordance with the directions of the DRP. See case of Toyota Tsusho P. India Ltd [2022 (11) TMI 179 - ITAT BANGALORE]. We notice that the assessee’s case is similar where the AO had not given effect to the directions of the DRP in the final assessment order and has retained the same adjustment as in the draft assessment order. Respectfully the above decision of the coordinate Bench, we quash the TP adjustment and hold the legal contentions raised in favour of the assessee. Since the TP adjustment is quashed on the basis of legal issue, we are not adjudicating the grounds raised with regard to TP adjustment on merits leaving them open. It is ordered accordingly. Disallowance of difference in 26AS - difference between the amount remitted as per Form 26AS and the revenue declared by the assessee in the Profit & Loss account - HELD THAT:- AR submitted that the difference between the revenue as per Form 26AS and the P&L account were reconciled and made the relevant submissions before the DRP (Ground No.10 in Form 35) and these submissions have not been considered on merits by the lower authorities and therefore prayed for remitting this issue back to the AO. DR did not have any objection. Accordingly, we remit this issue back to the AO to consider the reconciliation submitted by the assessee and decide the issue in accordance with law after giving reasonable opportunity of being heard. This ground is allowed for statistical purposes. Disallowance of TDS credit - HELD THAT:- We are of the considered view that the fact of whether tax is claimed as deduction in the year in which the income is offered needs to be examined based on evidence submitted by the assessee. We therefore remit the issue back to the AO to consider the issue on merits as per above directions, after giving reasonable opportunity of being heard.
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