2015 (11) TMI 1729

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....rected against an order dated 25th March, 2015 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No.5769/Del/2011 for the Assessment Year ('AY') 2003-04. The question urged by the Revenue is whether the Commissioner of Income Tax (Appeal) [CIT(A)] erred in accepting the plea of the Assessee that the provision for stock obsolescence/inventory for a sum of Rs. 2,53,06,608/- should be exclu....

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....r Pricing Officer (TPO) re-computed the net operating margin and included the provision for obsolescence in the sum of Rs. 2,53,06,608 as part of the operating expenditure of the Assessee. As a result, the difference of Rs. 1,81,79,699 in the net operating margin was attributed to the import of raw materials and accordingly, the TPO made a downward adjustment to the value of import of raw material....

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....uired to be excluded for the cost of the Assessee in computing its operating margin. Since the said item occurred only in KOEL, the CIT (A) was of the opinion that its margin needed to be re-worked. The rationale for this was that the same treatment had to be accorded to the tested party i.e. the Assessee and its comparables. Since the Assessee's ALP was above the margin of the comparables, the pr....