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TMI Blog2016 (7) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment year 2009-10. 2. The first issue arises for consideration is disallowance of deduction claimed u/s 10A of the Act. 3. Shri Vikram Vijayaraghavan, ld. Counsel for the assessee submitted that the DRP by following the order of this Tribunal for assessment year 2007-08, directed the Assessing Officer to consider the claim of the assessee u/s 10A of the Act in the light of the CBDT Circular. The ld. Counsel further submitted that the entire undertaking was acquired by slump sale from the transferor company, therefore, the undertaking cannot be held to be formed by reconstruction of the existing business. Consequent to the direction of this Tribunal for assessment year 2007-08, though the Assessing Officer rejected the claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the Revenue has filed any appeal before this Tribunal against the order of the CIT(A) for assessment year 2007-08. However, for the sake of consistency, this Tribunal is of the considered opinion that the DRP has rightly directed the Assessing Officer to consider CBDT Circular No.1 of 2013 and adjudicate the claim of the assessee u/s 10A of the Act. Therefore, this Tribunal do not find any infirmity in the order of the lower authority and accordingly the same is confirmed. 6. The next issue is with regard to transfer pricing adjustment made by the DRP. 7. Shri Vikram Vijayaraghavan, ld. Counsel for the assessee submitted that the assessee-company do not have any controlling interest in respect of the so called concern with which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Tribunal is of the considered opinion that since the assessee claims to have less than 26% interest in the Associated Enterprise and not holding any controlling interest in the management and finance, the matter needs to be reexamined by the Assessing Officer. In other words, whether the non-resident company to which the assessee has transaction is an Associated Enterprise within the parameters of law needs to be examined. Since such an exercise was not done either by the TPO or DRP, this Tribunal is of the considered opinion that the matter needs to be reexamined. Accordingly, the orders of the lower authorities are set aside and the entire issue is remitted back to the file of the Assessing Officer. The Assessing Officer shall reexami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into by DB India which is taken as comparable company by the TPO and DRP for the purpose of making transfer pricing adjustment. As rightly submitted by the ld. Counsel and the ld. DR, when transfer pricing adjustments were made in respect of the international transaction, the domestic transaction has to be excluded. However, the matter needs to be verified whether DB India has any transaction in the domestic market as claimed by the assessee. Since nobody has examined the transaction of DB India with its non- Associated Enterprise, this Tribunal is of the considered opinion that the matter needs to be reexamined as claimed by the ld. DR. Accordingly, the orders of the lower authorities are set aside and the issue with regard to tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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