TMI Blog2018 (3) TMI 1862X X X X Extracts X X X X X X X X Extracts X X X X ..... l documents that may be required to adjudicate the issue in judicious matter, particularly in view of the fact that the TPO has changed the methodology altogether to determine the ALP of international transactions. We admit the additional evidences. Since, the issue is required to be examine afresh, as per the plea of learned DR, we restore the issue relating to determination of arm s length price to the file of Assessing Officer/TPO for examining it afresh by duly considering the additional evidences furnished by the assessee. After hearing the assessee, they may take appropriate decision in accordance with the law. TP adjustment required to be made at entity level or to be restricted with the transactions entered between AE - HELD TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of hearing, learned AR advanced his arguments on the following three issues and submitted that other grounds are academic in nature :- (1) Whether TP adjustment is required to be made at the entity level or only to the transactions entered between associated enterprises. (2) Whether the learned CIT(A) was justified in rejecting the additional evidences filed by the assessee under rule 46A. (3) Claim for deduction of foreign exchange losses arising on revaluation of balance as at the year end. 2. Third issue cited above has been raised by way of additional ground of appeal. 3. The assessee company is engaged in the business of engineering consultancy services and supply of equipments. The assessee has undertaken foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led unaudited segmental reports before the TPO, but the same was rejected by the TPO. The TPO selected several comparables and computed average margin of comparables by adopting OP/TC at 36.77%. The TPO adopted the same as arm s length margin and accordingly proposed adjustment of ₹ 15.95 crores. Before the learned CIT(A), the assessee furnished audited segmental accounts and requested him to admit the same as additional evidence. However, the learned CIT(A) refused to admit the audited segmental accounts and confirmed the addition proposed by TPO. Aggrieved, the assessee has filed this appeal before the Tribunal. 4. Learned AR submitted that the assessee did not have audited segmental accounts when proceedings before TPO were goin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r examining it afresh instead of restoring to the file of Ld CIT(A). 6. We have heard the parties on this issue and perused the record. We noticed that the assessee has not prepared segmental accounts initially and hence it could furnish only unaudited segmental accounts before TPO. Hence the TPO has rejected the same doubting about its reliability. Subsequently, the assessee has prepared proper segmental accounts and got it audited and furnished the same before the learned CIT(A). We notice that the Ld CIT(A) has refused to admit the same for technical reasons. As held by the Coordinate Bench in the case of Smt. Avan Gidwani (supra), the additional evidences furnished by the assessee in the form of audited segmental accounts may be vita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he file of the AO/TPO, we prefer to restore this issue also to them. 9. The next issue contested by the assessee relates to claim for deduction of foreign exchange loss of ₹ 41.84 lakhs arising on revaluation of debtors/creditors and advances/losses balances as at the year end. The assessee has raised this plea by way of additional ground. 10. The Learned AR placed reliance on the decision rendered by Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383 (SC) and also decision rendered by Hon'ble Bombay High Court in the case of Pruthvi Brokers and Shareholders Pvt. Ltd. (2012) 349 ITR 336 and submitted that all facts relating to the claim are available on record and accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
