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2014 (12) TMI 11 - ALLAHABAD HIGH COURTDetermination of ALP – Re-computation of disallowance - material brought on record by TPO considered by CIT(A) or not – Held that:- The Tribunal was rightly of the view that while making a comparison of the operating profit with other comparables, the TPO is required to compute the operating profit by applying the same formula - He has no jurisdiction to apply a different formula to work out the operating profit for the comparables and for the assessee – there was no infirmity in the directions given by the CIT(A) to the AO to re-compute the disallowance based on similar status of comparables either with export incentives or without export incentives - the order of the AO u/s 251/143(3) notes that after the order of the CIT(A) dated 30 January 2012 directing the TPO to compute the Arm's Length Price, the TPO agreed with the opinion of the CIT(A) and by a letter dated 18 November 2013 stated that the correct Arm's Length Price would have to be computed by treating the case of the assessee and comparable instances on the same footing by according the same treatment to export incentives - the international transaction of the assessee was considered to reflect the Arm's Length Price – The order of the Tribunal is upheld – Decided against revenue.
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