TMI Blog2023 (9) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... contending that such an adjustment should be allowed under Transactional Net Margin Method (TNMM) and in the alternative, RPM should be taken as the MAM - Assessee desired to issue additional evidences like copy of agreement reached between AE and the assessee, with respect to loss suffered by assessee, copy of credit notes, mail communications for shortage of supply and computation of adjustment of import related expenses HELD THAT:- We are of the considered opinion that receiving additional evidence does not prejudice the case of the Revenue and on the other hand, promotes the determination of the tax liability of the assessee in a just way. With this view of the matter, we receive the additional evidence and restore the issue to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led this appeal. 2. Briefly stated relevant facts are that the assessee is a trader of vegetable seeds in India and has an extensive network of recognized distributors all over India. It is engaged in the business of sale of imported vegetable seeds research and development of seeds and seeding. It filed its return of income for the assessment year 2012-13 on 21/11/2012 declaring NIL income under the normal provisions of the Act and book loss of Rs. 2,86,36,352/- under the provisions of section 115JB of the Act. 3. Since the assessee made international transactions with its Associated Enterprises (AEs), determining the Arm s Length Price (ALP) thereof was referred to the Transfer Pricing Officer (TPO). Learned TPO, by order dated 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount advanced to group companies. 6. Learned AR, however, at the time of arguments submitted that the learned DRP denied the adjustment to operating cost claimed by the assessee on the ground that claim lacks concrete evidence to support the claim of extraordinary events/expenses, which are peculiar to this assessment year, which actually affected margins earned in rejecting the adoption of Resale Price Method (RPM) as the Most Appropriate Method (MOM) on incorrect assumptions and presumptions. Learned AR confined his arguments to the addition, contending that such an adjustment should be allowed under Transactional Net Margin Method (TNMM) and in the alternative, RPM should be taken as the MOM. Learned AR further challenged the not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow and, therefore, the view taken by the authorities is justified. He further submitted that without verification of such material, it is not possible to conclude that the authorities committed any error. Learned DR submitted that factual verification is required in respect of material submitted by the assessee by way of additional evidence and, therefore, without such verification, no relief could be granted to the assessee. 10. We have gone through the record in the light of the submissions made on either side. By way of additional evidence, the assessee seeks to produce copy of agreement reached between AE and the assessee, with respect to loss suffered by assessee on account of sale of watermelon seeds ARUN, copy of credit notes, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued to the customers and the agreement with the suppliers of seeds had taken considerable time. Further, the assessee had to make efforts to collate the comparative price for the financial year 2011-12 vis- -vis financial year 2010-11 along with the copies of bills of entry and also the details relating to the import related expenses adjustment. 13. Having regard to this factual matrix, we are of the considered opinion that receiving additional evidence does not prejudice the case of the Revenue and on the other hand, promotes the determination of the tax liability of the assessee in a just way. With this view of the matter, we receive the additional evidence and restore the issue to the file of learned Assessing Officer/learned TPO for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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