TMI Blog2020 (8) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... ed back to AO/TPO with the above directions for fresh decision by a speaking and reasoned order after affording reasonable opportunity of being heard to the assessee. Disallowance out of club expenses - We find that learned CIT(A) has decided the issue in cryptic manner without any discussion in respect of any judicial pronouncement on this issue. The judgment as noted above is very much relevant for deciding this issue and since the entire TP issue is being remanded to the AO/TPO for a fresh decision, we feel it proper to remand this issue also to the file of AO for a fresh decision after considering all judicial pronouncements on this issue along with the judgments noted above after allowing reasonable opportunity of being heard to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal that to bench mark the AE transaction, the AO should adopt internal TNMM in preference to external TNMM. In this regard, he submitted that this Tribunal order is available on pages 777 to 789 of the Paper Book and in particular, our attention was drawn to para 7 of this Tribunal order. He also submitted that in Assessment Year 2013-14 also, similar issue was decided by the Tribunal in assesseee s own case by following the earlier order of Tribunal for Assessment Years 2011-12 and 2012-13 and this Tribunal order for Assessment Year 2013-14 is available on pages 790 to 794 of the Paper Book in IT(TP)A No.1897/Bang/2017. He submitted that in the present 2 years also, the matter to be restored back to the file of AO/TPO for fresh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in the light of the transactions made with non-AEs in the same countries. It is settled position of law that if internal benchmarking is possible, the TPO should go with the internal benchmarking instead of going for external benchmarking by collecting various comparables from the database. In the instant case, since the assessee has placed the evidence to establish that the assessee has rendered similar type of services to AE and non-AE in the same countries, the internal benchmarking is possible. We therefore restore the matter to the AO/TPO to re-examine the issue of determination of ALP in the light of assessee's contentions. If the assessee is able to establish that he has undertaken the similar international transaction with AE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Co. (India) Ltd. Vs. CIT as reported in 195 ITR 682 and in the case of American Express International Banking Corporation vs. CIT as reported in 258 ITR 601. Learned DR of the Revenue supported the order of learned CIT(A) on this issue also. 7. We have considered the rival submissions and we find that learned CIT(A) has decided the issue in cryptic manner without any discussion in respect of any judicial pronouncement on this issue. The judgment as noted above is very much relevant for deciding this issue and since the entire TP issue is being remanded to the AO/TPO for a fresh decision, we feel it proper to remand this issue also to the file of AO for a fresh decision after considering all judicial pronouncements on this issue along w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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