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2021 (2) TMI 264 - AT - Income TaxTP Adjustment - comparable selection - MAM Selection - HELD THAT:- It is a fact that assessee had applied RPM method (though it is assessee’s contention that inadvertently it is stated to have followed TNMM method in TPO study report) TPO considered the TNMM method to be most appropriate method and proceeded to work out the adjustment accordingly. RPM method has been held to be a most appropriate method for determining of ALP transaction when the assessee is trading in goods without making any value addition. DRP was not justified in rejecting the RPM method followed by assessee. We therefore, set aside the order of TPO (pursuant to the directions of DRP) to compute the ALP by following the TNMM method. Thus the ground of appeal of the assessee is allowed Foreign exchange fluctuation loss in the Profit and Loss account - revaluation of closing stock - Assessee submitted that the foreign exchange loss incurred by the assessee was on account of actual payment to suppliers and reinstatement of books of account at the end of the year - for revaluation of closing stock assessee made provision of obsolete stock and the DRP had mistakenly considered the disallowance of foreign exchange loss made by the assessing officer in the draft order as disallowance of obsolete stock and directed the assessing officer to make disallowance - HELD THAT:- It is the contention of the Revenue that the details of the valuation of closing stock was not submitted by the assessee and on the other hand it is assessee’s contention that it the method of valuation has been regular followed by the assessee and required details were also submitted before the authorities. We however do not find any findings to the lower authorities on the method of valuation adopted by the assessee and the basis for its write down in the value of stock. Considering the totality of the aforesaid facts, we are of the view that the matter needs re-examination at the end of AO. We therefore restore restore the issue to the file of AO. The AO is directed to verify the submissions of the assessee. This ground of appeal is allowed for statistical purposes.
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