TMI Blog2014 (6) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... for fresh adjudication – Decided in favour of Assessee. - ITA No. 873/M/2014 - - - Dated:- 4-6-2014 - Shri P. M. Jagtap And Shri Amit Shukla,JJ. For the Petitioner : Shri Vijay Mehta, A.R. For the Respondent : Shri Surendra Kumar, D.R. ORDER Per Amit Shukla, Judicial Member: This appeal has been preferred by the assessee against final assessment order dated 30.01.14, passed in pursuance of directions given by the Dispute Resolution Panel-II (DRP), Mumbai for the quantum of assessment passed under section 143(3) read with section 144C(13) for the assessment year 2009- 10. The grounds of appeal raised by the assessee are as under:- 1. The assessment order passed by the learned Assessing Officer u/s 143(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer for a fresh adjudication. The ld. D.R. also has admitted that on similar facts the matter has been restored back to the file of the TPO as has been submitted by the ld. counsel. 3. The brief facts are that the assessee is engaged in the business of manufacturing of diamonds and precious stone-studded jewellery, which is made as per the designs supplied by its associated enterprise (AE) and the same is exported back to the AE in USA. During the year, the assessee has entered into following international transactions with the AE:- a) Import of gold, diamond, platinum etc. - Rs.33,95,08,954/- b) Export of finished jewellery items - Rs.45,85,29,789/- 3.1 The assessee s case has been that it is only doing a job work for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its earlier year order, has set aside the entire transfer pricing adjustment to the file of the TPO/AO after observing and holding as under:- 10. Now coming to the main issue in the present case as to what could be the MAM to determine the ALP for the transactions carried out with the AE. It has been stated that all the purchases have been made by the assessee from its AE at cost on the same value, which has been exported back to AE after manufacturing the jewellery as per designs. The assessee is only a job worker or a contract manufacturer who is entitled for making charges based on its cost incurred and not based on the value of material supplied by its AE. In such a situation, the comparables chosen by the TPO, who are full fledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od fails in this case. 11. Thus looking to the entire gamut of facts and circumstances of the case, we remand back the entire matter of transfer pricing adjustment to the file of TPO/AO to consider the assessee's plea for applicability of internal CUP and carry out comparability analysis afresh with the unrelated parties. If the CUP method fails, the Cost Plus Method could also be examined after calling for fresh comparables which are engaged in the similar line of business. The assessee will provide all the necessary information and material in support of its contention, firstly, as to what would be the most appropriate method and secondly, will also provide the internal or external comparables for bench marking its transaction with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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