TaxTMI 
TaxTMI 
2023 (7) TMI 1394
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....e has raised several grounds before us, the only effective issue to be decided in this appeal is as to whether the ld. AO was justified in making transfer pricing adjustment of Rs. 91,04,673/- pursuant to the directions of the ld. DRP in respect of the specified domestic transactions. 3. We have heard the rival submissions and perused the material available on record. The ld. TPO in his order has stated that the assessee company started off with manufacture of Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school and leather shoes. The assessee is one of India's most quality conscious and progressive footwear companies. The product range of the company include Hawaii, canvas, dip, Bahamas, leatherite, jog....
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....which is 10.35% as well as the profit margin of Unit- V for which deduction u/s 80IC of the Act was claimed. The complete details of semi-finished goods transferred from non-eligible unit to eligible unit were duly furnished by the assessee and they are also enclosed in pages 81-192 of the paper book filed before us. 5. The ld. TPO rejected the Cost Plus method adopted by the assessee as the Most Appropriate Method (MAM) and substituted the same with Transactional Net Margin Method (TNMM). The ld. TPO identified six comparables by adopting the Profit Level Indicator (PLI) as Operating Profit/Operating Cost (OP/OC) and arrived at the average margin of the comparables at 12.99%. This was compared with the assessee's margin of 15% and arm's l....
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..../s 143(3) r.w. section 144C(13) of the Act on 30.03.2021 wherein the ld. AO adopted the transfer pricing adjustment of Rs. 91,04,673/- as proposed by the ld. TPO and further made one more addition of Rs. 27,31,402/- (30% of Rs. 91,04,673/-) on account of disallowance of excess deduction u/s 80IC of the Act. Aggrieved, the assessee is in appeal before us. 8. The aforesaid facts are not in dispute. However, it would be pertinent to address the preliminary issue as to whether any transfer pricing adjustment per se can be made in respect of specified domestic transactions u/s 92BA of the Act in view of the fact that section 92BA(i) has been omitted from the statute by the Finance Act, 2017 w.e.f. 01.04.2017. This issue is no longer res integra....
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....s if it had never been passed, and the statute must be considered as a law that never existed. To this rule, an exception is engrafted by the provisions of section 6(1). If a provision of a statute is unconditionally omitted without a saving clause in favour of pending proceedings, all actions must stop where the omission finds them, and if final relief has not been granted before the omission goes into effect, it cannot be granted afterwards. Savings of the nature contained in section 6 or in special Acts may modify the position. Thus the operation of repeal or deletion as to the future and the past largely depends on the savings applicable. In a case where a particular provision in a statute is omitted and in its place another provision d....