Additional evidence in transfer pricing accepted, with arm's length price issue remanded for fresh adjudication.

Additional evidence first produced before the ITAT, including an AE confirmation and a format agreement with another broadcaster, was treated as material to determine the arm's length price of deemed international transactions involving television content production fees. Because the evidence was relevant and necessary for proper adjudication, it was admitted under Rule 29 of the ITAT Rules and the transfer pricing adjustment was restored to the Assessing Officer and TPO for fresh consideration after giving the assessee an adequate opportunity of hearing. The appeal succeeded only on this transfer pricing ground, and the remaining grounds did not survive for adjudication.

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Issues: Whether the transfer pricing adjustment relating to deemed international transactions of television content production fees required reconsideration in light of additional evidence first produced before the Tribunal.

Analysis: The additional material comprised a confirmation from the associated enterprise and a format agreement with another broadcaster, both of which were relevant to determining the arm's length price of the deemed international transactions. As these documents were produced for the first time and were material to the controversy, they were admitted under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963. Since the new evidence was crucial for deciding the dispute properly, the matter was restored to the Assessing Officer and Transfer Pricing Officer for fresh adjudication after granting adequate opportunity of hearing.

Conclusion: The issue was remanded for fresh consideration and the assessee obtained relief to that extent.

Final Conclusion: The appeal succeeded only on the transfer pricing ground, which was sent back for reconsideration, while the remaining grounds did not survive for adjudication.

Ratio Decidendi: Material additional evidence that is first produced at the appellate stage and is essential to determine arm's length price may be admitted and can justify remand for fresh decision after giving the assessee an opportunity of hearing.

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