2018 (10) TMI 1818

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....th, Shri Neeraj Jain, Adv. For the Respondent : Shri Sanjay I Bara, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the Revenue is preferred against the assessment order dated 05/02/2015 framed u/s 143(3) r.w.s 144C(1) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] pertaining to A.Y 2010-11. 2. The sum and substance of the grievance of t....

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.... has acknowledged that the Hon'ble High Court has ruled in favour of the assessee and since the department is in the process of filing SLP against the decision, therefore, the view taken in A.Y 2006-07 is being followed. The relevant findings of the Hon'ble High Court reads as under: "Held, allowing the appeal (i) that to apply the TNMM, the assessee's net profit margin realized f....

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....ce to the relevant factors (cost, assets, sales etc.) of the enterprise in question, i.e. the assessee, as opposed to the AE or any third party. The textual mandate, thus, is unambiguously clear.  (ii) The TPO‟s reasoning to enhance the assessee's cost base by considering the cost of manufacture and export of finished goods, i.e., ready-made garments by the third party venders ....