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2020 (1) TMI 1108 - AT - Income TaxTP Adjustment - upward adjustment u/s. 92C r.w.s. 92(1) in respect of sale price of plant and machinery - HELD THAT:- As gone through the judicial pronouncement in the case of ACIT vs. Koch Chemical Technology Group (India) Ltd. [2015 (11) TMI 16 - ITAT MUMBAI] wherein it is held that when assessee submitted a report from approved value indicating fair market value of machineries purchased, before rejecting such valuation report, TPO was duty bound to refer valuation of machineries to DVO as per procedure laid down under statute - Moreover, there being no other material brought on record by TPO demonstrating that he made enquiry of any kind to ascertain fair market value of machineries. Thus assessing officer is not justified in taking written down value without considering any comparable cases in the uncontrolled transaction and simply taken the arms length price on the basis of written down value of the machinery. Even, the TPO has not carried out any exercise to determine the arms length price of the machinery on the basis of comparable cases in the uncontrolled market. Therefore, we consider that ld. CIT(A) is not justified in sustaining upward adjustment made by the assessing officer by adopting written down value as ALP under the cup method and this ground of appeal of the assessee is allowed. Suppressed sale - difference in the quantity - unaccounted sale by taking average cost of batteries @ ₹ 4/- - HELD THAT:- The difference has arised only on account of action of the assessing officer for adding batteries distributed free of cost towards sales scheme. These submissions made by the assessee are placed at page no. 151 of the paper book and at para 5.21 of the submission it has been submitted that the batteries distributed towards sales schemes has already been considered in the excise record, therefore, further addition is not required to be made, the same are not excisable. Further these were distributed free to educational institutions and sales samples were not sold out of the books of account. As noticed that assessing officer himself has worked out the production as 23,95,42,769 pieces as against 23,83,38,363 pieces reported in the return filed with the Central Excise after duly excluding the pieces distributed free of cost towards sale samples - We consider that ld. CIT(A) is not justified in partly sustaining the disallowance, therefore, this ground of appeal of the assessee is allowed.
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