TMI Blog2012 (11) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... hod for determining the ALP to the TPO for fresh consideration. The fact the assessee adopted CUP method as the most appropriate method will not be conclusive and the endeavour of the assessee and the revenue should be to arrive at the correct ALP. Assessee also submitted that the price at which the Coffee Board sells Coffee seeds should not be taken as bench mark - remand the matter to the TPO for fresh consideration. - IT Appeal No. 853 (BANG.) of 2011 - - - Dated:- 14-9-2012 - N. BARATHVAJA SANKAR AND N.V. VASUDEVAN, JJ. K.K. Chythanya for the Appellant. Etwa Munda for the Respondent. ORDER N.V. Vasudevan, Judicial Member - This is an appeal by the assessee against the order of the DCIT, Bangalore, passed u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s144C r..w.s.144C(8). 8. The ld. DCIT passed an assessment order u/s 143(3) r.w.s.144C considering the direction of the Hon'ble DRP and raised a demand of Rs.1,26,38,959/-". 3. The assessee is a company engaged in the business of trading in Coffee, Cotton, Cocoa and other commodities. During the previous year, the assessee procured green Coffee beans from Coffee planters and traders located in Karnataka. The assessee sold green Coffee beans to one of its associated enterprises by name M/s Ecom Agro Industrial Corpn. Ltd., Switzerland (EACL). Since there was a international transaction with an Associated Enterprises (AE) the assessee had to support the price at which it sold green Coffee beans to its associated enterprises. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relied on the public price of the Coffee Board which was rejected by the revenue. The assessee thus, submitted that the revenue cannot blow hot and cold in the same breathe. The DRP did not accept the aforesaid plea of the assessee and held when the assessee himself has applied CUP method there is every justification for the TPO to accept the same. The DRP also held that it is a mere fact that the CUP method was also rejected in assessment year 2006-07 by the TPO does not mean in assessment year 2007-08 the said method should not be accepted the TPO. The DRP also held that the assessee trades in Coffee beans, Coffee beans are an agricultural product. It is a fact of common knowledge in micro-economics that most homogenous market exists in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has filed the present appeal before the Tribunal. We have heard the rival submissions. At the time of hearing before us, it was brought to our notice that in the assessment year 2006-07 in ITA No. 1389(B)/2010, the Tribunal in assessee's own case on an identical issue held as follows: "6. Having heard both the parties and having considered the rival contentions, we find that both the TPO as well as the DRP have not considered the objections raised by the assessee against the comparables selected by the TPO for arriving at the ALP. As seen from the submissions of the assessee, the glaring differences that appears to us are that "India Products Ltd.," is in the business of processing and trading in spices, whereas the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate method will not be conclusive and the endeavour of the assessee and the revenue should be to arrive at the correct ALP. The learned counsel for the assessee also made submissions before us that the price at which the Coffee Board sells Coffee seeds should not be taken as bench mark. We are of the view that it is open to the assessee to put forth his contentions in this regard, before the TPO, who shall consider the same in accordance with law. Respectfully following the decision of the Tribunal referred to above, we set aside the order of the AO as confirmed y the DRP and remand the matter to the TPO for fresh consideration in the light of the observations made above and in the light of the directions given by the Tribunal in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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