9911796707
TMI Blog2012 (4) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... record, it is observed that similar disallowance was made by the AO in the immediately preceding assessment year i.e. 2005-06. The Tribunal, vide its order dated 31-01-2012 in ITA No. 4089/Mum/2011 for such preceding year has restored the matter to the file of AO for taking a fresh decision in the light of the guidelines laid down in para-13. Both the sides are in agreement that the facts and circumstances of the instant year are mutatis mutandis similar to those of the immediately preceding year. Respectfully following the precedent, we set aside the assessment order on this point and direct the AO to re-decide this issue in consonance with the observations made by the Tribunal in the immediately preceding year. 4. Ground no. 2 is ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the figures of the assessee as a whole instead of the figures of international transactions with the associated enterprises. The ld. AR stated that the assessee is now having segmental results prepared from the books of account regularly maintained in respect of each segment. Relying on the order passed by the Mumbai Tribunal in Technimount ICB (P) Ltd. vs. ACIT (2011)11 taxman.com 49 (Mum), the ld. AR contended that the tribunal in such circumstances has held that where the assessee did not initially had segment-wise audited accounts but subsequently got such segmental results prepared, the matter required fresh examination by the AO. In this case, the tribunal has restored the matter back to the file of AO/TPO to determine the addition, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g profit margin of the comparable cases. It is axiomatic that the base has to remain the same. Since the assessee has now got segmental accounts, in our considered opinion, it will be just and fair if the impugned order is set aside and the matter is restored to the file of AO for determining the adjustment on account of transfer pricing, if any, by comparing the assessee's operating profit margin from the international transactions with the associated enterprises with that of arithmetic means of the comparable cases in respective categories. Needless to say the assessee will be allowed a reasonable opportunity of being heard in deciding this issue afresh as per law. 8. In the result, the appeal is allowed for statistical purposes. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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