TMI Blog2019 (11) TMI 1644X X X X Extracts X X X X X X X X Extracts X X X X ..... of international transactions requires fresh examination at the end of the AO/TPO by considering the fresh comparable companies. Export incentives - whether they are part of operating income or not? - HELD THAT:- Issue been settled by Hon ble Bombay High Court in the case of Welspun Zucchi Textiles Ltd [ 2017 (1) TMI 1037 - BOMBAY HIGH COURT] . Accordingly, we direct the AO/TPO to consider export incentives as part of operating income. Whether the outstanding receivables due from AE is an international transaction or not? - HELD THAT:- Since we are restoring main issue to the file of AO/TPO, we restore this issue also to the file of AO/TPO for examining it afresh. - IT(TP)A No.3329/Bang/2018 - - - Dated:- 8-11-2019 - SHRI B.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , whose average margin worked out to 10.17%. Accordingly he made Transfer Pricing adjustment of ₹ 5,98,07,371/-. The same was confirmed by Ld DRP. 4. The Ld A.R submitted that comparable companies selected by the Ld TPO are engaged in food processing, which is totally different from Gherkins (Vegetable) processed exported by the assessee. He further submitted that the TPO should have selected companies engaged in processing and export of Gherkins for the purpose of bench marking the international transactions of the assessee company. He submitted that the assessee is a member of M/s Indian Gherkin Exporters Association and following companies, who are members of the above said association, are carrying on identical business activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same product, as comparable companies. It is the submission of the assessee that the comparables selected by TPO are engaged in different activities, though they are engaged in food processing only. The Ld A.R submitted that the assessee has already gathered annual reports of companies dealing in the very same product, i.e., gherkins dealt with by the assessee. Accordingly we are of the view that the issue relating to bench marking of international transactions requires fresh examination at the end of the AO/TPO by considering the fresh comparable companies also cited above. 9. The issue relating to export incentives, i.e., whether they are part of operating income or not has since been settled by Hon ble Bombay High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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