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“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

ACIT Cen Cir 13, Mumbai vs. Ipca Laboratories Ltd, Mumbai

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

ITA 7511/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

Sushiladevi R. Somani, Mumbai vs. Asst CIT 18(1), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 5795/MUM/2016[2012-13]Status: DisposedITAT Mumbai26 Aug 2022AY 2012-13
Section 143(3)Section 2Section 55A

basis of net assets divided by the total number of equity shares is most appropriate. Of course, as to what is the most appropriate method of ascertaining the fair market value of shares in a private limited company would vary from case to case, but given the fact that

M/S Honeywell Technology Solutions Lab Private Limited, Bangalore vs. Joint Commissioner of Income Tax Special Range-3, Bangalore

ITA 2889/BANG/2018[2012-13]Status: DisposedITAT Bangalore26 Aug 2022AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Laxmi Prasad Sahuassessment Year : 2012-13

For Appellant: Smt. Shreya Loyalaka, AdvocateFor Respondent: Shri Sumer Singh Meena, CIT (DR)
Section 201(1)Section 40Section 80J

comparables in respect of IT enabled services selected by the tax payer by applying certain filters and TNMM was applied as the most appropriate method. The taxpayer has selected comparables engaged in the same industry vertical as the taxpayer. 5) The Submissions filed by the assessee being copy of Profit ... computed having regard to the arm's length price. • The arm's length price of international transaction is to be computed by the most appropriate method having regard to the nature of transaction or class of transactions or class of associated persons or functions performed by such persons

Textron India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal filed by the assessee stands allowed on the grounds argued by assessee and other issues that has not been pressed is kept open

ITA 711/BANG/2017[2012-13]Status: DisposedITAT Bangalore26 Aug 2022AY 2012-13
For Appellant: Shri Sumit Khurana, CAFor Respondent: Shri V.S. Chakrapani, CIT-DR
Section 92C(3)(c)Section 92D

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, Cir-6(2)(2), Mumbai vs. Diageo India Pvt.Ltd., Mumbai

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

ITA 2858/MUM/2016[2011-12]Status: DisposedITAT Mumbai25 Aug 2022AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Diageo India P. Ltd. Dcit 4Th Floor, Nicholas Piramal Tower Rg 6(2)(2) Peninsula Corporate Park, Aayakar Bhavan, Vs. Ganpatrao Kadam Marg, Mk Road, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Appellant) (Respondent) Pan No. Aaaci 3378 L Diageo India P. Ltd. Dcit 4Th Floor, Nicholas Piramal Tower Rg 6(2)(2) Peninsula Corporate Park, Aayakar Bhavan, Vs. Ganpatrao Kadam Marg, Mk Road, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Appellant) (Respondent)

For Appellant: Shri Nishant Thakkar &For Respondent: Ms. Vatsalaa Jha, CIT DR
Section 143(3)Section 144C(13)Section 253Section 92BSection 92C

following the TP provisions. He submitted that the assessee first fixes its own margin at 5% and then tries to find out most appropriate method and comparable which suits its design and this is not in accordance with law. 26. The learned counsel thereafter submitted that once it is proved ... expenses in an elaborate manner, let us examine the facts of the case. The assessee applied TNMM as the most appropriate method. Since the profit margin declared by the assessee was favourably comparable with the average margin of the comparables, the assessee claimed that no adjustment should be made

Diageo India P.Ltd, Mumbai vs. DCIT RG 6(2)(2), Mumbai

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

ITA 1002/MUM/2016[2011-12]Status: DisposedITAT Mumbai25 Aug 2022AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Diageo India P. Ltd. Dcit 4Th Floor, Nicholas Piramal Tower Rg 6(2)(2) Peninsula Corporate Park, Aayakar Bhavan, Vs. Ganpatrao Kadam Marg, Mk Road, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Appellant) (Respondent) Pan No. Aaaci 3378 L Diageo India P. Ltd. Dcit 4Th Floor, Nicholas Piramal Tower Rg 6(2)(2) Peninsula Corporate Park, Aayakar Bhavan, Vs. Ganpatrao Kadam Marg, Mk Road, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Appellant) (Respondent)

For Appellant: Shri Nishant Thakkar &For Respondent: Ms. Vatsalaa Jha, CIT DR
Section 143(3)Section 144C(13)Section 253Section 92BSection 92C

following the TP provisions. He submitted that the assessee first fixes its own margin at 5% and then tries to find out most appropriate method and comparable which suits its design and this is not in accordance with law. 26. The learned counsel thereafter submitted that once it is proved ... expenses in an elaborate manner, let us examine the facts of the case. The assessee applied TNMM as the most appropriate method. Since the profit margin declared by the assessee was favourably comparable with the average margin of the comparables, the assessee claimed that no adjustment should be made

Atos It Services Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-1(1)(1), Bangalore

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

ITA 226/BANG/2021[2016-17]Status: DisposedITAT Bangalore25 Aug 2022AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri Dhanesh Bafna, CAFor Respondent: Shri Bijoy Kumar Panda, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 92B(2)Section 92C

assessee in the SWD services segment has determined the ALP by applying TNM Method to be the most appropriate method. The Operating Profit to Operating Cost (OP/OC) has been taken as the Profit Level Indicator [PLI]. The assessee has chosen the following comparables whose median margin

Citrix R & D India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 2(1)(1), Bangalore

In the result, the appeal filed by the assessee stands allowed partly as indicated herein above

ITA 220/BANG/2021[2016-17`]Status: DisposedITAT Bangalore25 Aug 2022

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 220/Bang/2021 Assessment Year : 2016-17 M/S. Citrix R&D India Pvt. Ltd., The Deputy Prestige Dynasty, Commissioner Of Ground Floor, Income Tax, 33/2, Ulsoor Road, Circle – 2(1)(1), Bangalore – 560042. Vs. Bangalore. Pan: Aabcn3639C Appellant Respondent Assessee By : Shri Sumit Khurana, Ca Revenue By : Shri M. Mathivanan, Cit-Dr Date Of Hearing : 04-07-2022 Date Of Pronouncement : 25-08-2022 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Assessment Order Dated 30/03/2021 Passed By The National E-Assessment Centre, Delhi Relating To Assessment Year 2016-17 On Following Grounds Of Appeal: “The Grounds Mentioned Herein By The Appellant Are Without Prejudice To One Another. 1. That The Order Passed By The Learned Ao To The Extent Prejudicial To The Appellant, Is Bad In Law & Liable To Be Quashed. Transfer Pricing - 2. That The National E-Assessment Centre, Delhi / Deputy Commissioner Of Income Tax, Circle 2(1)(1), Bangalore ("Assessing Officer" Or "Learned Ao") & The Dispute Resolution Panel - 1 ("Learned Panel" Or "Learned Drp")

For Appellant: Shri Sumit Khurana, CAFor Respondent: Shri M. Mathivanan, CIT-DR

Payment of interest on 75,63,742 ECB- 6 month LIBOR 2.3 The Ld.TPO noted that the assessee used TNMM as the most appropriate method and OP/TC as PLI to compute its margin under SWD and ITES segment. The assessee computed its margin at 15.29% 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

M/S Infineon Technologies India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

ITA 3355/BANG/2018[2014-15]Status: DisposedITAT Bangalore25 Aug 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 3355/Bang/2018 Assessment Year : 2014-15 M/S. Infineon Technologies India Pvt. The Deputy Ltd., Commissioner Of 9Th Floor, Prestige Income Tax, Thirulakshmi, Circle – 3(1)(1), No. 11, Mg Road, Vs. Bangalore. Bangalore. Pan: Aabcs6967N Appellant Respondent : Shri K.R. Vasudevan, Assessee By Advocate : Shri Sumer Singh Meena, Revenue By Cit Dr Date Of Hearing : 12-07-2022 Date Of Pronouncement : 25-08-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Assessment Order Dated 26/10/2018 By The Ld.Dcit, Circle – 3(1)(1), Bangalore On Following Grounds Of Appeal: “A. Transfer Pricing The Grounds Mentioned Hereinafter Are Without Prejudice To One Another. 1. The Learned Assessing Officer ('Learned Ao'), Learned Transfer Pricing Officer ('Learned Tpo') & The Honourable Dispute Resolution Panel ('Hon'Ble Drp') Grossly Erred In Adjusting The Transfer Price By Inr 9,56,93,721/- With Respect To The International

For Respondent: Shri K.R. Vasudevan
Section 92C

learned TPO/ Hon'ble DRP erred in selecting an ad hoc interest rate while selecting that Comparable Uncontrolled Price ('CUP") Method as the Most Appropriate Method ('MAM') for determining the arm's length interest rate chargeable on receivables. 23. The Hon'ble DRP erred by not considering the fact that ... Ld.TPO noted that following were the international transaction reported in Form 3CEB. 2.3 The assessee used the TNMM as the most appropriate method and OP/OC computed margin at 14.96% for SWD segment and 9% for MSS segment. 2.4 Assessee used 7 companies as comparables for software development segment. The average

M/S Praxair India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Ltpu Circle-1, Bangalore

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

ITA 2839/BANG/2017[2013-14]Status: DisposedITAT Bangalore25 Aug 2022AY 2013-14
For Appellant: Sri.T.Suryanarayana, Senior AdvocateFor Respondent: Sri.Bijoy Kumar Panda, CIT-DR
Section 143(2)Section 143(3)Section 14ASection 37

interlinked to the primary operations of the Appellant; and (iii) Upholding the contentions of the learned TPO that the CUP Method is the most appropriate method in determining the ALP of payment of royalty to AE despite the learned TPO not following the provisions prescribed in clause ... interlinked to the primary operations of the Appellant; and (iii) Upholding the contentions of the learned TPO that the CUP Method is the most appropriate method in determining the ALP of payment of royalty to AE despite the learned TPO not following the provisions prescribed in clause

Oocl Logistics (India) P.Ltd, Mumbai vs. ITO 7(3)(1), Mumbai

In the result, appeal by the assessee is allowed for statistical purpose

ITA 2001/MUM/2015[2010-11]Status: DisposedITAT Mumbai24 Aug 2022AY 2010-11

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Siddhesh ChauguleFor Respondent: Ms. Vatsalaa Jha
Section 143(3)Section 144C(13)Section 234BSection 244A

expenses, the assessee has received information technology and management support services. For benchmarking, the assessee used Transactional Net Margin Method (‘TNMM‟) as most appropriate method with Profit Level Indicator (‘PLI‟) of Operating Profit to Total Sales. By considering itself as the tested party, the assessee identified following 7 companies

M/S Information Technology Park Limited, Bangalore vs. Income Tax Officer Ward-11(2), Bangalore

ITA 1358/BANG/2018[2010-11]Status: DisposedITAT Bangalore24 Aug 2022AY 2010-11

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy S

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Rajesh Kumar Jha, CIT(DR)(ITAT), Bengaluru
Section 143(1)Section 143(2)Section 143(3)Section 2(22)

building. (d) rejecting the alternative contention of the appellant that, based on the facts of the case, Discounted Cash Flow Method is the most appropriate method to be followed for valuation of shares. 4. The learned CIT(A) has erred in not appreciating that the redemption of preference shares

M/S Information Technology Park Limited, Bangalore vs. Income Tax Officer Ward-3(1)(4), Bangalore

ITA 1357/BANG/2018[2009-10]Status: DisposedITAT Bangalore24 Aug 2022AY 2009-10

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy S

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Rajesh Kumar Jha, CIT(DR)(ITAT), Bengaluru
Section 143(1)Section 143(2)Section 143(3)Section 2(22)

building. (d) rejecting the alternative contention of the appellant that, based on the facts of the case, Discounted Cash Flow Method is the most appropriate method to be followed for valuation of shares. 4. The learned CIT(A) has erred in not appreciating that the redemption of preference shares

Wns Global; Services Pvt Ltd., Mumbai vs. Dy CIT Circle- 14 (3)(1), Mumbai

In the result appeal filed by the assessee is partly allowed

ITA 295/MUM/2020[2015-16]Status: DisposedITAT Mumbai23 Aug 2022AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Cross Objection No. 52/Mum/2020 (Arising In Ita No. 2383/Mum/2019 For A.Y. 10-11)

For Appellant: ShriFor Respondent: Shri Tejandra Pal Singh, DR

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) having rightly held CUP is not most appropriate method for benchmarking the marketing support services provided by the AE WNS capital investment itd, is correct in directing the TPO to treat it as tested ... parties. Margins earned by the foreign associated enterprise are benchmarked by using foreign comparable adopting the transactional net margin method as being the most appropriate method considering operating profit/operating cost of the AE as the profit level indicator. PlI of tested parties are higher, assessee contends these transactions

DCIT-14(3)(1), Mumbai vs. Wns Global Services Pvt Ltd., Mumbai

In the result appeal filed by the assessee is partly allowed

ITA 2383/MUM/2019[2010-11]Status: DisposedITAT Mumbai23 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Cross Objection No. 52/Mum/2020 (Arising In Ita No. 2383/Mum/2019 For A.Y. 10-11)

For Appellant: ShriFor Respondent: Shri Tejandra Pal Singh, DR

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) having rightly held CUP is not most appropriate method for benchmarking the marketing support services provided by the AE WNS capital investment itd, is correct in directing the TPO to treat it as tested ... parties. Margins earned by the foreign associated enterprise are benchmarked by using foreign comparable adopting the transactional net margin method as being the most appropriate method considering operating profit/operating cost of the AE as the profit level indicator. PlI of tested parties are higher, assessee contends these transactions

Oocl Logistics (India ). P.Ltd, Mumbai vs. DCIT Cir 7(1), Mumbai

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

ITA 7024/MUM/2012[2008-09]Status: DisposedITAT Mumbai23 Aug 2022AY 2008-09

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Ajit Jain a/wFor Respondent: Ms. Vatsalaa Jha
Section 115JSection 143(3)Section 144CSection 234DSection 271(1)(C)Section 271(1)(c)Section 92C(2)Section 92C(3)Section 92D

same were aggregated with main transaction of provision of logistics services. For benchmarking, the assessee used Transactional Net Margin Method (‘TNMM‟) as most appropriate method with Profit Level Indicator (‘PLI‟) of Net Profit to Total Sales. By considering itself as the tested party, the assessee identified following 8 companies

Eit Services India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

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

ITA 210/BANG/2021[2016-17]Status: DisposedITAT Bangalore22 Aug 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Shri Praveen Karanth, D.R
Section 133(6)Section 143(3)Section 92D

dated 23.11.2012 wherein this Tribunal took the following view:- “64. The next objection of the Assessee is that when the most appropriate method selected for determining ALP is the TNMM there is no reason as to why one should look at price difference in offshore software development and onsite software

Capita India Pvt Limited (Capita India), Mumbai vs. Nafc Delhi, Delhi

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

ITA 732/MUM/2022[2017-18]Status: DisposedITAT Mumbai18 Aug 2022AY 2017-18
Section 143(3)Section 14A

received revenue of Rs.345.73 crores during the year under consideration. In its transfer pricing study, the assessee followed TNM method as most appropriate method and Operating Profit to Operating Cost (OP/OC) as Profit level indicator. The PLI of the assessee was 14.75%. The Ld A.R submitted that the assessee ... applied by TPO. Further, the Ld A.R also took support of Rule 10C(2)(c) of Income tax Rules, which states that the most appropriate method 4 Capita India Private Ltd. has to be selected on the basis of the availability, coverage and reliability of data necessary for application

Hp India Sales Private Limited, Bangalore vs. Joint Commissioner of Income Tax Ltu, Bangalore

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

ITA 524/BANG/2017[2012-13]Status: DisposedITAT Bangalore18 Aug 2022AY 2012-13

Bench: Shri George George K, Jm & Shri Laxmi Prasad Sahu, Am It(Tp)A No.524/Bang/2017 : Asst.Year 2012-2013 M/S.Hp India Sales Private The Joint Commissioner Of Limited (Formerly Known As Income-Tax, Ltu V. Bangalore. Hewlett-Packard India Sales Private Limited), 24 Salarpuria Area, Hosur Main Road, Adugodi Bangalore – 560 030. Pan : Aaacc9862F. (Appellant) (Respondent) Appellant By : Sri.Ajay Vohra, Senior Counsel / Sri. Neeraj Jain, Sri.Lalit Attal & Sri.Karon Dhanuka, Advoicates Respondent By : Sri.Harishchandra Naik, Cit-Dr Date Of Pronouncement : 18.08.2022 Date Of Hearing : 27.07.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 03.01.2017 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2012-2013. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is A Company Engaged In Import Of Computer Peripherals From Its Associated Enterprises (Aes) For Sale In India & Also Rendered Certain Support Services. The Return Of Income For Assessment Year 2012-2013 Was Filed On 29.02.2012, Admitting Total Income Of Rs.544,61,99,276. The Return Was Revised On 25.03.2014

For Appellant: Sri.Ajay Vohra, Senior Counsel / Sri. Neeraj JainFor Respondent: Sri.Harishchandra Naik, CIT-DR
Section 143(2)Section 143(3)Section 144CSection 92BSection 92C

Ground 1 and sub grounds) 3. During the relevant previous year, the assessee had entered into following international transactions with its AEs:- Transaction Most Appropriate Method Import of computer and computer Transactional Net Margin Method peripherals Purchase of software licenses Aggregated with transaction of import of computer and computer peripherals ... Communications India (P.) Ltd. v. CIT [2015] 374 ITR 118 held that once the revenue accepts the entity level margins as per the most appropriate method, it would be inappropriate to treat a particular expenditure as a separate international transaction. It was held that such an exercise would lead

Tekla India P.Ltd, Navi Mumbai vs. ITO 15(3)(1), Mumbai

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

ITA 211/MUM/2016[2011-12]Status: DisposedITAT Mumbai17 Aug 2022AY 2011-12

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Divesh ChawlaFor Respondent: Shri Milind Chavan
Section 143(3)Section 144C(13)Section 253Section 40

linked to the software distribution activity of the Appellant and cannot be analysed separately and thus Transaction Net Margin method (TNMM) is the most appropriate method to benchmark the aforesaid international transaction. Use of method for benchmarking the international transaction 11. erred in holding the arm's length price ... relevant Rules. In fact, as found both by the CIT (A) as well as the Tribunal that neither the method selected as the most appropriate method to determine the ALP is challenged nor the comparables taken by the respondent assessee is challenged by the TPO. Therefore, the ad-hoc determination