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2022 (8) TMI 301 - AT - Income TaxTP Adjustment - Selection of MAM - assessee submitted to consider CUP as most appropriate method in view of the availability of TIPS data base for comparability and filed additional evidence in the form of TIPS data - HELD THAT:- Exercise of examining comparability has already been carried out by the TPO in remand during DRP proceedings, wherein the TPO has rejected the comparability on the ground that geography and volume of the transactions was not available in the database. In our opinion, the AO or the TPO has authority to call for complete information of the transactions of import of raw materials and export of finished goods from the Custom Authorities including invoices of import or export having details of geography and volume. The Ld. TPO may also remove the related party transactions from the relevant information. We note that AO in assessment year 2014-15 has carried out exercise for comparing the international transactions of the assessee with the uncontrolled transactions available in TIPS data base and that too after the order of the Ld. DRP for year under consideration.We feel it appropriate to restore the matter to the AO/TPO for comparing the TIPS data with the international transactions of the assessee under CUP method of comparability as most appropriate method. In case, the CUP method fails, the Ld. AO/TPO may explore another methods including TNMM. - Ground of the appeal are accordingly allowed for statistical purposes. Nature of receipt - compensation received on termination of marketing support agreement - revenue or capital receipt - contention of the assessee that said compensation is respect of loss of source of income and therefore it is capital in nature and not chargeable to tax - HELD THAT:- As there was no restriction on the assessee to carry out his activity of marketing support services to anyone. By way of cancellation of marketing support service agreement in respect of SBH, there is no damage or impairment to the trading structure of the assessee. There was no removal of any employee of the marketing team by way of amendment in agreement and therefore there is no loss of source of income. The entire team of marketing support as capable of rendering services as was before the termination of market support of SBH. Moreover, the marketing team was providing marketing support in respect of other product after termination of assessment for SBH. In the case of Kettlewell Bullen & Co. Ltd. [1964 (5) TMI 4 - SUPREME COURT] also it is held that where payment is made to compensate the person for cancellation of the contract, which does not affect the trading structure of his business or deprive him of what in substance is a source of income, termination of the contract being a normal incident of the business and such cancellation leaves him free to carry on his trade (freed from the contract terminated), the receipt is revenue. Charging of interest u/s 234A - HELD THAT:- As assessee has contended that the assessee filed its return of income on 27/11/2015, whereas due date prescribed for filing return of income under section 139 (1) during relevant assessment year was 30/11/2015 and therefore interest u/s 234A has been wrongly levied. Both the parties agreed that issue is for verification by the AO and accordingly, the issue in dispute is restored to the file of the AO for deciding in accordance with law after verifying the facts on the record. Appeal is accordingly allowed for statistical purposes.
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