← All Phrases

“most appropriate method”

Transfer PricingSection 92CSection 92C1,345 judgments

The decision most relied on for most appropriate method is CIT v. Cushman & Wakefield (India) (P.) Ltd. (367 ITR 730), cited in 120 judgments on BharatTax.

Leading authorities on most appropriate method

CIT v. Cushman & Wakefield (India) (P.) Ltd.
367 ITR 730 · 2014 · High Court
120
citing judgments

This case determines the Arm's Length Price (ALP) for intra-group services and reimbursements, clarifying when charges constitute services warranting a mark-up versus mere pass-through costs. It provides guidance on the circumstances under which an ALP adjustment, including an ALP of 'nil', is appropriate for such transactions.

Dresser-Rand India (P.) Ltd. v. Addl. CIT
13 Taxmann.com 82 · 2011 · High Court
43
citing judgments

An Assessing Officer cannot disregard an assessee's decision to avail services from associated enterprises, even if the assessee has internal expertise, as the determination of necessity is the assessee's prerogative. The Transfer Pricing Officer's role is to determine the arm's length price, not the need for the service itself.

CIT v. EHPT India P Ltd.
350 ITR 41 · 2013 · High Court
41
citing judgments

The headcount method is an appropriate allocation key for indirect expenses between eligible and non-eligible units when it has been consistently accepted by revenue authorities and there is no just cause for abandoning it. Deviation from a consistently followed and accepted method can disturb or distort profits.

Mobis India Ltd. v. Dy. CIT
38 Taxmann.com 231 · 2013 · ITAT
38
citing judgments

A working capital adjustment is unreliable if it is based on broad approximations, estimations, and assumptions, and the assessee fails to demonstrate how the adjustment was arrived at.

LG Electronics India Pvt. Ltd. v. ACIT
29 Taxmann.com 300 · 2013 · High Court
37
citing judgments

The 'bright line test' is not an appropriate method for determining the existence of an international transaction for calculating arm's length price. This ruling overrules prior special bench decisions on AMP expenses.

Magneti Marelli Powertrain India Pvt. Ltd. v. DCIT
389 ITR 469 · 2016 · High Court
35
citing judgments

The Assessing Officer (AO) or Transfer Pricing Officer (TPO) cannot dispute the application of the TNMM method if they have already accepted it as the most appropriate method for certain international transactions, especially when other transactions are intrinsically linked.

Skoda Auto India (P) Ltd. v. ACIT, Aurangabad
30 SOT 319 · 2009 · ITAT
26
citing judgments

The Tribunal may allow adjustments for differences between the tested party and comparable companies to eliminate material differences, provided accurate and credible evidence is furnished.

Principal Commissioner of Income-tax-6 v. Matrix Cellular International Services (P.) Ltd.
90 Taxmann.com 54 · 2018 · High Court
25
citing judgments

The Resale Price Method (RPM) is the most appropriate method for determining the arm's length price of a distributor who does not add significant value to the goods purchased.

Judgments citing most appropriate method

DCIT RG 8(2) (OSD), Mumbai vs. Hsbc Professional Services (I) P. Ltd, Mumbai

ITA 8753/MUM/2011[2006-07]Status: DisposedITAT Mumbai13 Sept 2022AY 2006-07

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2006-07 Jcit-8(2), (Osd), M/S Hsbc Professional Services Room No. 216-A, Aayakar (India) Pvt. Ltd., Bhavan, M.K. Road, Vs. Kamla Bhavan, Swami Nityanand Mumbai-400020. Marg, Andheri (East), Mumbai-400069. Pan No. Aabch 0705 R Appellant Respondent Assessment Year: 2006-07 Hsbc Professional Services The Deputy Commissioner Of (India) Private Limited, Income-Tax Range 8(2), 6Th Floor, Shiv Building, Cts Vs. Mumbai. No. 139 & 140B, Sahar Road, Vile Parle (East), Mumbai-400057. Pan No. Aabch 0705 R Appellant Respondent Assessee By : Mr. Niraj Sheth, Ar Revenue By : Mr. V.K. Agarwal, Dr Date Of Hearing : 01/07/2022 Date Of Pronouncement : 13/09/2022

For Appellant: Mr. Niraj Sheth, ARFor Respondent: Mr. V.K. Agarwal, DR
Section 92CSection 92C(2)Section 92D

Transactional Net M/s HSBC Professional Services Pvt. Ltd. Professional Services Pvt. Ltd. ITA Nos. 8753 & 8823/M/2011 Margin Method (TNMM) a (TNMM) as the most appropriate method s the most appropriate method for benchmarking international transactions. The benchmarking international transactions. The Ld. TPO has noted the TPO has noted the admission ... length price of the international transa length price of the international transactions. As far as selection of ctions. As far as selection of most appropriate method as Transactional Net Margin Method most appropriate method as Transactional Net Margin Method most appropriate method as Transactional Net Margin Method (TNMM), there

Sri. Krishna Diamonds, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

In the result, the appeal of the assessee is partly allowed for statistical purpose

ITA 232/BANG/2022[2014-15]Status: DisposedITAT Bangalore13 Sept 2022AY 2014-15

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Shri Rohit Goutham, C.AFor Respondent: Dr. Manjunath Karkihalli, CIT (DR)
Section 234BSection 92B

GROUNDS RELATED TP ADJUSTMENT 4. The lower income tax authorities have erred in: i. Not appreciating that the CUP Method is the most appropriate method in the facts and circumstances of the case. IT(TP)A No.232/Bang/2022 Page 3 of 24 ii. Rejecting the TP analysis undertaken by the Appellant ... based on CUP method on unjustified reasons and performing fresh transfer pricing analysis; and iii. Not appreciating that TNMM is not the most appropriate method in the facts and circumstance of the case. .. 5. Without prejudice to the above and assuming without admitting that TNMM is most appropriate method

M/S. G Corp Spaces Private Limited, Bangalore vs. The Assistant Commissioner of Income Tax, Circle- 3(1)(2), Bangalore

Appeal is allowed for statistical purposes

ITA 198/BANG/2022[2017-18]Status: DisposedITAT Bangalore13 Sept 2022AY 2017-18

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Praveen Karanth, CIT(DR)(ITAT), Bengaluru
Section 143(3)

assessee benchmarked the said transactions using CUP method. In the TP study, the assessee used Comparable Uncontrolled Price (CUP) method as the most appropriate method for determining the arm’s length price (ALP) of the interest rate on NCDs issued to the AE. As per the comparables chosen ... associated enterprises. The assessee benchmarked the aforesaid transaction of payment of interest by applying Comparable Uncontrolled Price (CUP) method as the most appropriate method and thus justified that the aforesaid payment of interest was at an arm's length price. The stand of the assessee was that interest charged

Nxp India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-5(1)(1), Bangalore

In the result, the appeal by the assessee is partly allowed

ITA 264/BANG/2021[2016-17]Status: DisposedITAT Bangalore13 Sept 2022AY 2016-17

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 234BSection 271(1)(c)Section 92C

TNMM Total 2,52,97,75,636 7,53,22,213 2,60,50,97,849 9. TNMM is used as the most appropriate method by the assessee as well as the TPO and there is no dispute to the same. The profit level indicator (PLI) is taken as Operating

Levi Strauss (India) Private Limited, Bengaluru vs. Income Tax Officer, Ward-4(1)(1), Bangalore

In the result, ground 10(c) is allowed for statistical purposes

ITA 223/BANG/2021[2016-17]Status: DisposedITAT Bangalore13 Sept 2022AY 2016-17
For Appellant: Smt.Shreya Loyalka, CAFor Respondent: Sri.Bijoy Kumar Panda, CIT-DR
Section 143(2)Section 143(3)Section 288ASection 37Section 92C

support services segment (refer pages 4 and 5 of the TPO’s order). The assessee adopted Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM). The assessee selected six companies as comparables. The TPO did not dispute the TNMM adopted by the assessee. However, as regards the selection

Amc Cookware (India) Private Limited, Bangalore vs. Income Tax Officer, Ward-1(1)(1), Bangalore

In the result, appeal of the assessee is allowed for statistical purposes

ITA 429/BANG/2022[2017-18]Status: DisposedITAT Bangalore07 Sept 2022AY 2017-18

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.429/Bang/2022 Assessment Year : 2017-18 M/S. Amc Cookware (India) Private Limited, Vs. Ito, No.1180, 12Th B Main, 1St Cross, Hal 2Nd Ward – 1(1)(1), Stage, Indira Nagar, Bengaluru. Bengaluru – 560 008. Pan : Aacca 4970 G Appellant Respondent Assessee By : Shri. K. P. Srinivas, Ca Revenue By : Shri. V. S. Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 01.09.2022 Date Of Pronouncement : 07.09.2022 O R D E R Per N. V. Vasudevan: This Is An Appeal By The Assessee Against The Final Order Of Assessment Dated 30.03.2022 Passed By The Ito, Ward – 1(1)(1) Of National Faceless Assessment Centre, Delhi, Passed Under Section 143(3) R.W.S. 144C(13) R.W.S. 144B Of The Income Tax Act, 1962 (Hereinafter Called ‘The Act’) In Relation To Assessment Year 2017-18. 2. The Only Dispute Raised By The Assessee In This Appeal Is As To Whether The Revenue Authorities Were Justified In Determining The Shortfall In Arm’S Length Price (Alp) Of An International Transaction At Rs.2,37,87,122/- & It(Tp)A No.429/Bang/2022 Page 2 Of 8

For Appellant: Shri. K. P. Srinivas, CAFor Respondent: Shri. V. S. Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 92

erred in rejecting the Resale Price Method (*RPM') adopted by your appellant and instead adopted Transactional Net Margin Method (`TNMM') as the most appropriate method ('MAM') to determine the arm's length price of the international transactions with its associated enterprises (**AEs") in the Distribution segment. Consequently ... whom the question of determination of ALP was referred to by the AO did not accept RPM as the Most Appropriate Method (MAM). He chose TNMM as the MAM and chose 3 comparable companies which were as follows: AVERAGE Sl. No. Company Name OP/OC 1 Hawkins Cookers

Spencer Stuart International B.V., Mumbai vs. The Asstt. CIT (International Taxation)-4(2)(2), Mumbai

In the result, appeals filed by the assessee are allowed

ITA 1148/MUM/2021[2016-17]Status: DisposedITAT Mumbai06 Sept 2022AY 2016-17

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 143(3)Section 144CSection 144C(5)Section 195Section 9(1)(vii)

Executive search transactions. So far as the Executive search transactions are concerned, the APA states that the 'Profit Split Method' is the most appropriate method for benchmarking the transactions. We are only highlighting the aforesaid features of the APA to point out that there is a complete dichotomy between

DCIT Circle- 3(3)(1), Mumbai vs. M/S Reliance Corporate It Park Ltd., Navi Mumbai

In the result, the appeal by the Revenue is dismissed in terms of our aforesaid findings

ITA 1195/MUM/2020[2012-13]Status: DisposedITAT Mumbai05 Sept 2022AY 2012-13

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nimesh Vora a/wFor Respondent: Shri Chetan M. Kacha, Sr. AR
Section 250

Park Ltd. ITA No.1195/Mum./2020 and C.O. No. 140/Mum./2021 ITeS services, the assessee used Transactional Net Margin Method („TNMM’) as the most appropriate method with Profit Level Indicator („PLI’) of operating profit/operating costs. By considering itself as the tested party, the assessee identified 4 comparable companies having arithmetic mean ... accounting, taxation, insurance, HR & administration areas. For benchmarking the international transaction pertaining to business support services, the assessee used TNMM as the most appropriate method with PLI of operating profit/operating costs. By considering itself as the tested party, the assessee identified 4 comparable companies having arithmetic mean of operating margins

Mfe Formwork Technology Sdn Bhd, Mumbai vs. The CIT (Intl Tax), Mumbai

In the result, the appeal is allowed

ITA 890/MUM/2022[2017-18]Status: DisposedITAT Mumbai30 Aug 2022AY 2017-18
Section 143(3)Section 263

service PE under Article 5(2)(1). On the second question the AAR ruled that the transactional net margin method (TNMM) was the most appropriate method for the determination of the Arm's Length Price (ALP) in respect of the service agreement dated 14-4- 2005 and it meets

Juniper Networks India Pvt. Ltd., Mumbai vs. DCIT.- CC- 2(4), Mumbai

The appeal is partly allowed

ITA 7412/MUM/2017[2013-14]Status: DisposedITAT Mumbai30 Aug 2022AY 2013-14
For Appellant: Vijay MehtaFor Respondent: Dr. Yogesh Kamat
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 234ASection 271(1)(c)

Segment. For benchmarking international transactions with AEs pertaining to Marketing Support Segment, the Appellant had adopted Transactions Net Margin Method (TNMM) as the most appropriate method with weighted average Net Cost plus Mark Up as the Profit Level Indicator (PLI). The Appellant had selected 5 comparables. However, the TPO rejected

Arm Embedded Technologies Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 1(1)(1), Bengaluru

In the result, appeal of the assessee stands partly allowed

ITA 235/BANG/2021[2016-17]Status: DisposedITAT Bangalore30 Aug 2022AY 2016-17
For Appellant: 2.1 Rejecting the value of international transaction of provision of SWD and proFor Respondent: Shri T. Suryanarayana
Section 133(6)Section 143(3)Section 144C(13)Section 92D

towards RSU Reimbursement of expenses paid towards Rs.5,90,21,834/- ESPP 2.4 The Ld.TPO noted that the assessee used TNMM as the most appropriate method and OP/OC as PLI to compute its margin under SWD and ITES segment. The assessee computed its margin at 11.4% for SWD segment ... price in relation to an international transaction [or a specified domestic transaction] shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :--- (a) to (d)…………. (e)transactional net margin method, by which,— (i) the net profit margin realised by the enterprise

DCIT Cent. Cir. 5(2), Mumbai vs. Ipca Laboratories Ltd., Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 5227/MUM/2016[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. DCIT Ltu, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3811/MUM/2016[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Asst CIT (Ltu) 1, Mumbai vs. Ipca Laboratories Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3691/MUM/2016[2009-10]Status: DisposedITAT Mumbai29 Aug 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3597/MUM/2016[2009-10]Status: DisposedITAT Mumbai29 Aug 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

DCIT (Ltu) 1, Mumbai vs. Ipca Laboratories Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2815/MUM/2015[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2493/MUM/2015[2008-09]Status: DisposedITAT Mumbai29 Aug 2022AY 2008-09

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. DCIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3267/MUM/2012[2007-08]Status: DisposedITAT Mumbai29 Aug 2022AY 2007-08

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. ACIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 8120/MUM/2010[2005-06]Status: DisposedITAT Mumbai29 Aug 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores

Ipca Laboratories Ltd, Mumbai vs. DCIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 8084/MUM/2010[2006-07]Status: DisposedITAT Mumbai29 Aug 2022AY 2006-07

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

learned Transfer Pricing Officer found that assessee has exported pharmaceutical products to National Drugs (Pty) Ltd. It considered the CUP as the most appropriate method. It was stated that as Associated Enterprises supply its goods to the local Government on tender basis whose price are fixed, the assessee ... stated that transactions are at arm’s length. The learned Transfer Pricing Officer adopted the cost plus margin method (CPM) as the most appropriate method and proposed an adjustment of ₹58,89,000/-. The learned Assessing Officer further fund that assessee has given interest free advances of ₹2.66 crores