TMI Blog2017 (3) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... DRP is set aside. The DRP shall decide the issue afresh after considering the relevant material on record. - ITA No. 476/Mds/2016 - - - Dated:- 31-1-2017 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri Pathlewath Peerya, CIT For The Respondent : Shri S. Sridhar, Advocate ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the Revenue is directed against the order of the Assessing Officer subsequent to the direction of the Dispute Resolution Panel (DRP) dated 24.11.2015 and pertains to the assessment year 2011-12. 2. Shri Pathlewath Peerya, the Ld. Departmental Representative submitted that the DRP by taking M/s. Ashnoor Textiles Mills Ltd., as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of hearing, the assessee has also alternatively submitted before the Assessing Officer that Transactional Net Margin (TNM) Method can also be adopted. The assessee company selected 4 comparables and determined the average means of profit line indicator at 3.95%. According to the Ld. Counsel, the assessee has not objected the comparability margin in the transfer pricing document. However, requested the TPO to make some adjustment. For the assessment year 2009-10, the DRP considered the objection of the assessee and found that the TNM method is the most appropriate method. According to the Ld. Counsel, selection of most appropriate method is not in dispute. According to the Ld. Counsel, the assessee included M/s. Ashnoor Textile Mills Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has not furnished the break-up details of the employee cost. During the year under consideration it appears that the assessee has furnished the break-up details of employee cost in the paper book before the DRP. Therefore the DRP directed the TPO to decide the percentage of risk adjustment to be calculated. Moreover, the DRP has also directed the TPO to take M/s. Ashnoor Textiles Mills Ltd. as one of the comparable. The question under consideration is, can the DRP direct the TPO to decide the issues arise for adjudication before the DRP. 6. We have carefully gone through the provision of Section 144C of the Act. Section 144C (7) clearly says that, DRP before issuing any direction under sub-section (5) of 144C, make such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to direct the TPO to make any enquiry. 8. In view of the above, as rightly submitted by the Ld. D.R. the DRP has no power or authority to direct the TPO to decide the percentage of risk adjustment to be calculated. In view of the above, the order of the lower authorities including the DRP is set aside. The DRP shall decide the issue afresh after considering the relevant material on record. In the course of adjudication, it is open to the DRP to make further enquiry by itself or call for a relevant report either from the Assessing Officer or from the TPO or from any other income tax authority and thereafter the issue arises for consideration has to be decided by the DRP itself. With the above observation, the issue is restored back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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