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2016 (12) TMI 1135 - ITAT CHENNAITransfer pricing adjustment - most appropriate method selection - Held that:- The assessee claims that Transaction Net Margin Method is the most appropriate method. For the purpose of transfer pricing adjustment, Section 92C provides for the method to be adopted. Therefore, the Transfer Pricing Officer and Dispute Resolution Panel have to determine the transfer pricing adjustment by following any one of the methods prescribed under Section 92C of the Act, which would be appropriate to the international transaction made by the assessee. In the case before us, the Dispute Resolution Panel and the Transfer Pricing Officer have not adopted any of the methods prescribed under Section 92C of the Act. As rightly contended by the Ld.counsel for the assessee, the DRP resorted to statistical method to benchmark the international transaction. This Tribunal is of the considered opinion that the DRP is expected to find out most appropriate method among the methods prescribed under Section 92C of the Act. The Dispute Resolution Panel is not expected to travel beyond the method prescribed under Section 92C of the Act. Cusstoms duty adjustment and working capital employed, the Dispute Resolution Panel has simply placed its reliance on its own order in the assessee's own case for assessment year 2009-10. This Tribunal examined the directions of the Dispute Resolution Panel in the assessee's own case for assessment year 2009-10 wherein Dispute Resolution Panel directed the Transfer Pricing Officer to determine the transfer pricing adjustment afresh. This Tribunal found that such a direction cannot be given by the Dispute Resolution Panel. The Dispute Resolution Panel can at the best call for a remand report from the Transfer Pricing Officer and determine the issue by directing the Assessing Officer to make adjustment as determined in the directions of the Dispute Resolution Panel and accordingly, this Tribunal remanded the matter back to the file of the Assessing Officer. In the case before us, the issue is identical to that of assessment year 2009-10 and the Dispute Resolution Panel has simply followed their earlier order. This Tribunal is of the considered opinion that the matter needs to be reconsidered as directed by this Tribunal in the earlier order. Accordingly, the orders of the lower authorities are set aside and the entire issue is remitted back to the file of Assessing Officer. - Decided in favour of assessee for statistical purpose
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