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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

M/S Quicklogic Software (India) Pvt. Ltd., Bangalore vs. Deputy Commissioner of Income-Tax, Circle-3(1)(1), Bengaluru

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

ITA 181/BANG/2022[2017-18]Status: DisposedITAT Bangalore27 Jul 2022AY 2017-18

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 181/Bang/2022 Assessment Year : 2017-18 M/S. Quicklogic Software (India) Pvt. Ltd., No. 10 Brindavan, The Deputy 3Rd Floor, Commissioner Of Yashoda Nagar Main Income Tax, Road, Circle 3(1)(1), Jakkur Plantation, Vs. Bangalore. Bengaluru – 560 064. Pan: Aaacq0656P Appellant Respondent Assessee By : Shri Mahaveer C Jain, Ca : Shri Sumer Singh Meena Cit Revenue By Dr Date Of Hearing : 12-07-2022 Date Of Pronouncement : 27-07-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Order Dated 25/01/2022 By The National Faceless Assessment Centre For A.Y. 2017-18 On Following Revised Grounds Of Appeal:

For Appellant: Shri Mahaveer C Jain, CA
Section 142(1)Section 143(2)Section 92C

Ld.TPO noted that assessee computed its margin at 11.69% by using OP/OC as the PLI and TNMM as the most appropriate method. 2.4 The Ld.TPO noted that assessee selected 16 comparables with an average margin of 9.59% and held the transaction to be at arms length. 2.5 Dissatisfied with ... length price in certain cases. 10CA. (1) Where in respect of an international transaction or a specified domestic transaction, the application of the most appropriate method referred to in sub-section (1) of section 92C results in determination of more than one price, then the arm's length price

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

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

ITA 477/BANG/2021[2016-17]Status: DisposedITAT Bangalore27 Jul 2022AY 2016-17

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

For Appellant: Smt. Rashmi R., AdvocateFor Respondent: Shri Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)

Business SG&A other cost Total 1,02,94,57,156/- 6. The assessee adopted Transactional Net Margin Method [TNMM] as the Most Appropriate Method [MAM] for the purpose of arriving at the ALP and the Operating Profit/Operating Cost (OP/OC) is chosen as the Profit Level Indicator [PLI]. According

Polycom Technology ( R & D ) Center P. Ltd, Hyderabad vs. DCIT Cir 7(3)(2), Mumbai

In the result, appeal of the assessee for A

ITA 2067/MUM/2017[2012-13]Status: DisposedITAT Mumbai26 Jul 2022AY 2012-13

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

For Appellant: Shri M. P. Lohia & Shri MihirFor Respondent: Ms. Vatsalaa Jha, CIT DR
Section 143(3)Section 144CSection 92C

2067/M/2017 & 7398/M/18 Polycom Technology (R&D) Center P. Ltd.; A.Y. 12-13 05. Assessee adopted the Transactional Net Margin Method as the most appropriate method and stated that its international transactions are at arm‟s length selecting 24 comparables, taking Profit level indicator of OP/OC of 9.80%, whereas the margin

DCIT 2(3), Mumbai vs. Tech Mahindra P.Ltd, Mumbai

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

ITA 3033/MUM/2014[2008-09]Status: DisposedITAT Mumbai26 Jul 2022AY 2008-09

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri H.P. MahajaniFor Respondent: Shri Chandra Vijay
Section 10ASection 250Section 2D

functions, asset and risk analysis, nature of international transaction and availability of comparable data, assessee selected the Transactional Net Margin Method (‘TNMM‟) as most appropriate method with Profit Level Indicator (‘PLI‟) of net cost plus markup. Further, associated enterprise was selected as a tested party on the basis that functions

Vena Energy Patan Power Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 2(2), Bangalore

In the result, ITA No.254/Bang/2022 is partly allowed, while

ITA 255/BANG/2022[2017-18]Status: DisposedITAT Bangalore26 Jul 2022AY 2017-18

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

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Srinivas T. Bidari, CIT(DR)
Section 115JSection 143(3)Section 40

paid up and carried an interest @ 14.70% p.a. In the TP study, the assessee has chosen Comparable Uncontrollable Price [CUP] method as the most appropriate method (MAM) for determination of the arm’s length price [ALP]. Accordingly, the assessee applied certain filters to arrive at the comparable companies. The assessee

Vena Energy Kn Wind Power Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

In the result, ITA No.254/Bang/2022 is partly allowed, while

ITA 254/BANG/2022[2017-18]Status: DisposedITAT Bangalore26 Jul 2022AY 2017-18

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

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Srinivas T. Bidari, CIT(DR)
Section 115JSection 143(3)Section 40

paid up and carried an interest @ 14.70% p.a. In the TP study, the assessee has chosen Comparable Uncontrollable Price [CUP] method as the most appropriate method (MAM) for determination of the arm’s length price [ALP]. Accordingly, the assessee applied certain filters to arrive at the comparable companies. The assessee

Vena Energy Mh Wind Power Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

In the result, ITA No.254/Bang/2022 is partly allowed, while

ITA 253/BANG/2022[2017-18]Status: DisposedITAT Bangalore26 Jul 2022AY 2017-18

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

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Srinivas T. Bidari, CIT(DR)
Section 115JSection 143(3)Section 40

paid up and carried an interest @ 14.70% p.a. In the TP study, the assessee has chosen Comparable Uncontrollable Price [CUP] method as the most appropriate method (MAM) for determination of the arm’s length price [ALP]. Accordingly, the assessee applied certain filters to arrive at the comparable companies. The assessee

Vena Energy Fatanpur Power Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

In the result, ITA No.254/Bang/2022 is partly allowed, while

ITA 252/BANG/2022[2017-18]Status: DisposedITAT Bangalore26 Jul 2022AY 2017-18

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

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Srinivas T. Bidari, CIT(DR)
Section 115JSection 143(3)Section 40

paid up and carried an interest @ 14.70% p.a. In the TP study, the assessee has chosen Comparable Uncontrollable Price [CUP] method as the most appropriate method (MAM) for determination of the arm’s length price [ALP]. Accordingly, the assessee applied certain filters to arrive at the comparable companies. The assessee

M/S. Sulzer Tech India P. Ltd., Navi Mumbai vs. Addl./Jt./ Dy./ Asstt. CIT/ Income Tax Officer, Delhi

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

ITA 633/MUM/2021[2016-17]Status: DisposedITAT Mumbai25 Jul 2022AY 2016-17

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Ravi Saeana a/wFor Respondent: Shri Tejinder Pal Singh
Section 143(3)Section 144C(13)Section 92CSection 92C(1)

associated enterprises and given access to the relevant database. For benchmarking this transaction, the assessee used Transactional Net Margin Method (‘TNMM‟) as the most appropriate method with Profit Level Indicator (‘PLI‟) of operating profit to M/s. Sulzer Tech India Pvt. Ltd. ITA No.633/Mum./2021 total expenses. By considering itself ... availing such IT support services. For benchmarking, the associated enterprise was considered as tested party. Further, Cost Plus Method was selected as the most appropriate method with PLI of operating profit to total expenses. Accordingly, assessee selected 68 comparables from both APAC and EU regions, whose three-year weighted average

M/S Ingersoll-Rand Climate Solutions Private Limited, Bangalore vs. The Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal of the assessees is partly allowed

ITA 729/BANG/2017[2012-13]Status: DisposedITAT Bangalore25 Jul 2022AY 2012-13

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

For Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)

Ground Nos. 1 & 2 are general in nature requiring no specific adjudication. Adoption of Resale Price Method (RPM) as Most Appropriate Method(MAM) for distribution of Cold Storage Equipment Activity (Trading Segment) – Ground 7 7. The assessee imports traded goods from its AE for its trading / distribution activities ... logistic management activities including transportation from ports, customs formalities, ensuring proper warehousing of its finished goods, etc. The assessee adopted RPM as the most appropriate method (“MAM”) for determining the arm’s length nature of the international transactions undertaken with respect to the segment of distribution of Cold Storage Equipment

M/S Ingersoll-Rand Technologies and Services Private Limited, Bangalore vs. The Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

ITA 728/BANG/2017[2012-13]Status: DisposedITAT Bangalore25 Jul 2022AY 2012-13

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

For Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)

group services rendered by the AE was aggregated with all other international transactions and assessee adopted Transactional Net Margin Method [TNMM] as the most appropriate method [MAM]. The cost contribution charges are paid by the assessee towards services received from the AE in the areas of information technology, human resources ... cost contribution charges. The TPO considered the cost contribution charges as a separate class of transaction and applied CUP method as the most appropriate method for computing the ALP and made an estimate towards this adjustment and determined the ALP as NIL on the ground that there is no evidence

Torrecid India Private Limited, Mumbai vs. ACIT Circle 11(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 7076/MUM/2017[2013-14]Status: DisposedITAT Mumbai22 Jul 2022AY 2013-14

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Acit Circle 11(3)(1) Torrecid India Private Limited 2Nd Floor, Plot No.29, 30, 31, Vs. Aayakar Bhavan, Alindra, Savli Gidc, Vadodara, Vadodara–391775 Mk Road, Mumbai-400 020 (Appellant) (Respondent) Pan No. Aadct 4321 M

For Appellant: Shri Sunil M. Lala, ARFor Respondent: Ms. Neelu Jaggi, DR
Section 143(3)Section 144CSection 144C(13)Section 271(1)(c)Section 92

length price of the international transaction under section 92 of the Act. 2. Rejection of methodical Transfer Pricing analysis and selection of Most Appropriate Method for Benchmarking Analysis On the facts and in the circumstances of the case and in law, the ld. AO/ ld. TPO erred ... rejecting the Resale Price Method (RPM) considered by the Appellant and selecting the Transactional Net Margin Method ("TNMM") method, as the most appropriate method for benchmarking the international transaction of import of finished goods for distribution without providing any cogent reasons for the rejection of RPM. 3. Without prejudice erred

Thyssenkrupp Industiral Solutions (India) P.Ltd, Mumbai vs. DCIT RG 15(3)(1), Mumbai

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

ITA 1274/MUM/2016[2011-12]Status: DisposedITAT Mumbai22 Jul 2022AY 2011-12

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri H. Jamshedji a/wFor Respondent: Shri Chandra Vijay
Section 143(3)Section 144C(13)Section 234BSection 40

enterprise and later reimbursed by the assessee is the Comparable Uncontrolled Price („CUP‟) for the reimbursement, accordingly CUP method was adopted as the most appropriate method for benchmarking this transaction. 6. The Assessing Officer made reference to the Transfer Pricing Officer (‘TPO‟) for determination of 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

Addl CIT RG 4(3), Mumbai vs. Morgan Stanley India Company P. Ltd ( Formerly Known As J M Morgan Stanley Securities P. Ltd), Mumbai

In the result, appeal of the learned Assessing Officer is dismissed and appeal of the assessee is partly allowed

ITA 2320/MUM/2011[2005-06]Status: DisposedITAT Mumbai22 Jul 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Morgan Stanley India Company Addl. Cit, P. Ltd. Range 4(3), 18F/19F One Indiabulls Centre, Room No. 635, 6Th Floor, Tower 2-B, 841, Vs. Jupiter Mills Off Senapati Bapat Aaykar Bhavan Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Respondent) (Appellant) Pan No. Aaacj 4998 F Morgan Stanley India Company Addl. Cit, P. Ltd. Range 4(3), 18F/19F One Indiabulls Centre, Room No. 635, 6Th Floor, Tower 2-B, 841, Vs. Jupiter Mills Off Senapati Bapat Aaykar Bhavan Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Respondent) (Appellant)

For Appellant: Shri Sunil M. Lala, ARFor Respondent: Ms. Vatsalaa Jha, CIT DR
Section 14ASection 250Section 40Section 40A(2)

accepting the Appellant's contention of applying Transactional Net Margin Method (TNMM) on overall basis as the most appropriate method for determining the ALP for trades executed with the AES. 1.3 In not accepting the Appellant's contention that even if the Comparable Uncontrolled Price Method (CUP Method) is applied ... amounting to Rs. 35,54,824/-. The assessee aggregated all the transactions and adopted Transactional Net Margin Method (TNMM), as the most appropriate method, benchmarked along with other ITA Nos.2206 &2320/Mum2011 Morgan Stanley India Co. P. Ltd; A.Y. 05-06 transactions which are not in dispute, submitted that all international

Morgan Stanley India Company P. Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

In the result, appeal of the learned Assessing Officer is dismissed and appeal of the assessee is partly allowed

ITA 2206/MUM/2011[2005-06]Status: DisposedITAT Mumbai22 Jul 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Morgan Stanley India Company Addl. Cit, P. Ltd. Range 4(3), 18F/19F One Indiabulls Centre, Room No. 635, 6Th Floor, Tower 2-B, 841, Vs. Jupiter Mills Off Senapati Bapat Aaykar Bhavan Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Respondent) (Appellant) Pan No. Aaacj 4998 F Morgan Stanley India Company Addl. Cit, P. Ltd. Range 4(3), 18F/19F One Indiabulls Centre, Room No. 635, 6Th Floor, Tower 2-B, 841, Vs. Jupiter Mills Off Senapati Bapat Aaykar Bhavan Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 (Respondent) (Appellant)

For Appellant: Shri Sunil M. Lala, ARFor Respondent: Ms. Vatsalaa Jha, CIT DR
Section 14ASection 250Section 40Section 40A(2)

accepting the Appellant's contention of applying Transactional Net Margin Method (TNMM) on overall basis as the most appropriate method for determining the ALP for trades executed with the AES. 1.3 In not accepting the Appellant's contention that even if the Comparable Uncontrolled Price Method (CUP Method) is applied ... amounting to Rs. 35,54,824/-. The assessee aggregated all the transactions and adopted Transactional Net Margin Method (TNMM), as the most appropriate method, benchmarked along with other ITA Nos.2206 &2320/Mum2011 Morgan Stanley India Co. P. Ltd; A.Y. 05-06 transactions which are not in dispute, submitted that all international

M/S. Sap Labs India Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range-6, Bangalore

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

ITA 606/BANG/2021[2008-09]Status: DisposedITAT Bangalore21 Jul 2022AY 2008-09

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Sap Labs India Pvt. Ltd., No. 138, Export It(Tp)A No. Promotion Industrial 2008-09 606/Bang/2021 Park, Whitefield, Bangalore – 560 066. Pan: Aafcs3649P The Joint M/S. Sap Labs India Commissioner Of Pvt. Ltd. Income Tax, (Successor To M/S. Special Range – 6, Success Factors Bangalore. Business Solutions It(Tp)A No. India Pvt. Ltd.), 2015-16 2510/Bang/2019 No. 138, Export Promotion Industrial Park, Whitefield, Bangalore – 560 066. Pan: Aafcs3649P

For Appellant: Shri Aliasger Rampurwala, CA
Section 3(1)(b)

legal & professional 81029605 and IT Support charges 6.3 Assessee computed its margin at 11.88% by using OP/OC as PLI and TNMM as the most appropriate method. The assessee used 12 comparables in respect of SWD segment, with an average margin of 15.24%. The assessee treated the foreign exchange loss

M/S. Success Factors Business Solutions India Private Limited (Now Merged With Sap Labs India Private Limited), Bangalore vs. Joint Commissioner of Income Tax, Special Range - 6, Bangalore

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

ITA 2510/BANG/2019[2015-16]Status: DisposedITAT Bangalore21 Jul 2022AY 2015-16

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Sap Labs India Pvt. Ltd., No. 138, Export It(Tp)A No. Promotion Industrial 2008-09 606/Bang/2021 Park, Whitefield, Bangalore – 560 066. Pan: Aafcs3649P The Joint M/S. Sap Labs India Commissioner Of Pvt. Ltd. Income Tax, (Successor To M/S. Special Range – 6, Success Factors Bangalore. Business Solutions It(Tp)A No. India Pvt. Ltd.), 2015-16 2510/Bang/2019 No. 138, Export Promotion Industrial Park, Whitefield, Bangalore – 560 066. Pan: Aafcs3649P

For Appellant: Shri Aliasger Rampurwala, CA
Section 3(1)(b)

legal & professional 81029605 and IT Support charges 6.3 Assessee computed its margin at 11.88% by using OP/OC as PLI and TNMM as the most appropriate method. The assessee used 12 comparables in respect of SWD segment, with an average margin of 15.24%. The assessee treated the foreign exchange loss

M/S Denso Kirloskar Industries Pvt.Ltd., Bangalore vs. Assistant Commissioner of Income-Tax, Bangalore

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

ITA 73/BANG/2017[2012-13]Status: DisposedITAT Bangalore20 Jul 2022AY 2012-13

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

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri V.S. Chakrapani, CIT(DR)(ITAT), Bengaluru

year, there were several international transactions between the assessee and its AEs in the manufacturing segment. The assessee selected TNM Method as the most appropriate method and taking certain comparable companies, the assessee concluded the international transactions as at arm’s length. In arriving at the profit margin, the assessee

Sitel India Ltd, Mumbai vs. DCIT RG 8(3), Mumbai

In the result, appeal by the assessee is allowed

ITA 6875/MUM/2014[2007-08]Status: DisposedITAT Mumbai19 Jul 2022AY 2007-08

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Ajit Jain a/wFor Respondent: Shri Tejinder Pal Singh
Section 10ASection 143(3)Section 195Section 250Section 271(1)(c)Section 40

capable of directly marketing its services. For benchmarking this transaction, the assessee adopted the Transactional Net Margin Method (‘TNMM’) as the most appropriate method with Profit Level Indicator (‘PLI’) of operating profit on cost. The assessee adopted certain adjustment for unutilised capacity and on such adjustments it has submitted that ... record. From the record, it is evident that during the transfer pricing assessment proceedings, the TPO neither questioned the selection of the most appropriate method nor disputed the PLI adopted by the assessee. The TPO proposed a set of 25 companies as comparable to the assessee and sought assessee

DCIT 8(3), Mumbai vs. Sitel India Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2595/MUM/2014[2009-10]Status: DisposedITAT Mumbai19 Jul 2022AY 2009-10

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Ajit Jain a/wFor Respondent: Shri Tejinder Pal Singh
Section 250Section 271(1)(c)Section 92C

section 92C of the Act. It had treated the assessee company as the tested party and it used the TNMM method as the most appropriate method to determine the arm's length nature of its transactions. At no stage in the proceedings before the TPO or the AO or even ... deals with computation of ALP and enlists the methods to be followed for same. In the present case, assessee applied TNMM as the most appropriate method, which is also prescribed under section 92C of the Act. As noted above, there is no dispute regarding the selection of most appropriate method