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2. The proposed substantial questions of law framed in the memorandum of appeal by the appellants-

Revenue is quoted below for ready reference:

Date of Judgment 13-07-2018 I.T.A.No.525/2014 The Commissioner of Income-tax & Anr. Vs. M/s. Toyota Kirloskar Motors (P) Ltd., "1. Whether on the facts and in the circumstances of the case, the Tribunal is right in setting aside the Arm's Length Price determined by the Transfer Pricing Officer by relying on its earlier decision passed in ITA No.828/Bang/2010 dated 22/11/2012 even when the said orders has not reached finality as the Revenue has preferred appeal before this Hon'ble Court in ITA No.172 of 2013?.

Date of Judgment 13-07-2018 I.T.A.No.525/2014 The Commissioner of Income-tax & Anr. Vs. M/s. Toyota Kirloskar Motors (P) Ltd.,

4. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in allowing the appeal preferred by assessee even when the assessment order and TPO's order are passed in accordance with provisions of the I.T. Act?".

3. This appeal was ADMITTED on 23.11.2015 to consider the aforesaid substantial questions of law framed by the learned counsel for the Appellants-

Revenue.

4. The learned Tribunal, after discussing the rival contentions of both the appellants-Revenue and the Respondent-assessee, has returned the findings as under:

"41. We have given a very careful consideration to the rival submissions. On the issue as to whether the international transactions have to be considered separately or independently without aggregating them as part of the segment to which they relate, we find that the term 'international transaction' has been defined in section 92B of the Act to mean and include transactions between two or more AEs, Date of Judgment 13-07-2018 I.T.A.No.525/2014 The Commissioner of Income-tax & Anr. Vs. M/s. Toyota Kirloskar Motors (P) Ltd., either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money or any other transaction having bearing on the profits, income, losses or assets of such enterprise. Section 92 of the Act provides that income from international transactions between AEs shall be computed having regard to ALP. Section 92-C of the Act prescribes the method s of determining ALP, having regard to the most appropriate method which will be decided in accordance with the rules prescribed. Rule 10A(d) of the Income-tax Rules 1962 ['the Rules'] provides that 'transaction' would include a number of closely linked transactions. Rule 10B(1)(d) of the Rules advocate profit split method of determining ALP where international transactions involve transfer of unique intangible or in multiple international transactions which are so inter-related that they cannot be evaluated separately for the purpose of determining ALP of any one transaction. It thus appears that the Act and the Rules contemplate determining ALP by aggregating international transactions which are multiple, interlinked or inter-related to each other and cannot be evaluated separately. To this extent the conclusions of the TPO regarding determination of ALP by taking segmental results without looking into as to whether Date of Judgment 13-07-2018 I.T.A.No.525/2014 The Commissioner of Income-tax & Anr. Vs. M/s. Toyota Kirloskar Motors (P) Ltd., the two segments are interlinked or inter-related cannot be sustained. As to what would be the most appropriate method in such cases is again dependent on Rules 10B(2) and (3) of the Rules.

43. The above being the legal position, it becomes necessary to examine the international transactions carried out by the assessee with its AE during the previous year which have been categorized into 2 segments by the TPO in his order and find out if they are interlinked or interconnected so that the transactions need to be evaluated together rather than individually. In this regard, we find that the submissions made by the Assessee before TPO as Date of Judgment 13-07-2018 I.T.A.No.525/2014 The Commissioner of Income-tax & Anr. Vs. M/s. Toyota Kirloskar Motors (P) Ltd., well as before DRP have not been considered at all. The TPO proceeded on the basis that ALP of each transaction has to be examined independently/individually by placing reliance on the decisions of Tribunal in the case of Star India Ltd. (supra) and UKB(I) (P) Ltd. (supra). We agree with the submissions of the learned counsel for the assessee that these decisions have in fact accepted in principle that aggregation of transactions have to be done where they are interlinked but have on facts found that transactions were not interlinked and therefore held that ALP of transactions have to be determined individually. The following decisions relied upon the learned counsel for the assessee also supports the plea of the learned counsel for the assessee.