TMI Blog2016 (2) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... the companies selected by him for determination of the ALP if it is held that the RPM is the most appropriate method. Accordingly, ground Nos. 1 to 13 are treated as allowed for statistical purposes. Disallowance u/s 36(1)(5) - contribution is to employees superannuation fund which has not been approved by the appropriate authority - HELD THAT:- As this is a legal issue, we deem it fit and proper to admit the additional evidence filed by the assessee and remit this issue also to the file of the A.O, to examine the issue relating to the contribution made to the LIC and consider the same in the light of the judgment of the Hon ble Supreme Court in the case of Tex Tool Company Limited. [ 2009 (9) TMI 66 - SUPREME COURT ] Accordingly, Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are purchased for its own usage also. He submitted that in its T.P. study, the assessee had applied Resale Price Method ( RPM ) to submit that the transaction was at ALP. The TPO, however, adopted TNMM as the most appropriate method and proposed an adjustment to the assessee s margin. 2.1. Assessing Officer, thereafter, passed the draft assessment order in accordance with the T.P. order. Against the same, the assessee preferred its objections before the DRP and the DRP confirmed the draft assessment order and accordingly, the A.O. passed the final assessment order, against which, the assessee is in appeal before us. 3. The Ld. Counsel for the assessee Mr. R. Vijayaraghavan, reiterated the submissions made before the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there was no dispute with regard to the method adopted by the assessee during its TP study. Such being the case, there is no reason as to why the assessee should not be allowed to adopt the same method even during the relevant A.Y. On perusal of the TPO order, we find that the TPO has reproduced the parameters to be taken into consideration for adopting the RPM for comparability analysis, but except stating that the RPM method can be adopted only where the products are closely comparable, he has not given detailed reasoning as to why the said method is not applicable to the assessee. We find that the TPO has not brought on record any evidence as to how the products sold by the comparable companies are not similar to the products sold by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Tex Tool Company Limited reported in 263 CTR 257 (SC) wherein it has been held that the contribution made to LIC is also eligible for deduction under section 36(1)(v) of the I.T. Act. He submitted that the A.O. has disallowed the claim of the assessee under section 36(1)(5) of the I.T. Act on the ground that the contribution is to employees superannuation fund which has not been approved by the appropriate authority. He has submitted that the assessee has made the contribution to LIC and as held by the Hon ble Supreme Court, the contribution to LIC is allowable under section 36(1)(5) of the I.T. Act, 1961. 7. The Ld. D.R. submitted that the assessee s contention that contribution to the LIC had not been raised before the A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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