← 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

D.Ci.T., Central Circle-4(1), Kolkata vs. M/S Impex Ferro Tech Ltd., Kolkata

In the result, both the appeals filed by the assessee are dismissed as infructuous

ITA 1521/KOL/2019[2014-15]Status: DisposedITAT Kolkata27 Oct 2025AY 2014-15

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 144CSection 145(3)Section 250

That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in considering internal CUP as the most appropriate method ignoring the fact that CUP method is used in product to product similarity with AEs and non-AEs but the assessee failed to provide ... facts and in the circumstances of the case the Ld. CIT(A) has erred in admitting the internal CUP method as the most appropriate method without appreciating the fact that, as per record, no compliance was made by the assessee during the Transfer Pricing Audit proceeding except for filing

Surbhit Impex Private Limited, Mumbai vs. Principal Commissioner of Income Tax -8, Mumbai

In the result, the appeal of the assessee is allowed

ITA 2570/MUM/2025[2018-19]Status: DisposedITAT Mumbai27 Oct 2025AY 2018-19

Bench: Shri Amit Shukla & Shri Prabhash Shankar

For Appellant: Shri K. Shivaram Sr. Adv.& Shri Shashi Bekkal, ARFor Respondent: Shri Vivek Perampurna, (CIT-DR)
Section 147Section 263Section 41(1)

where the assessee had paid the taxes under a different method of accounting, it was held that the most appropriate method of accounting to correctly reflect a true financial statement is a matter of opinion and debate, which is not amenable to revisional jurisdiction under Section

Juniper Networks Solution India Private Limited, New Delhi vs. Assessment Unit, NFAC Itd, New Delhi

In the result, ground no 3 raised by the assessee is allowed in its favour

ITA 4400/DEL/2024[2020-21]Status: DisposedITAT Delhi24 Oct 2025AY 2020-21

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.Juniper Networks Solution India Pvt. Ltd., Vs. Assessment Unit, Unit No.Iia, 06Th Floor, Dlf Centre, Nfac Itd, Parliament Street, Connaught Place, New Delhi – 110 001. (Pan : Aaecj1345A) (Appellant) (Respondent) Assessee By : Shri Sachit Jolly, Sr. Advocate Shri Sandeep Bhalla, Advocate Shri Anurag Singhal, Ca Revenue By : Shri S.K. Jadhav, Cit Dr Date Of Hearing : 05.08.2025 Date Of Order : 24.10.2025 O R D E R Per S. Rifaur Rahman: 1. This Appeal Preferred By The Assessees Is Directed Against The Assessment Order Dated 27.07.2024 Passed By The Income Tax Department, Assessment Unit U/S 143(3) Read With Section 144C(13)/144B Of The Income-Tax Act, 1961 (For Short ‘The Act”) For Assessment Year 2020-21 Pursuant To The Directions Of The Dispute Resolution Panel U/S 144C(5) Of The Act.

For Appellant: Shri Sachit Jolly, Sr. AdvocateFor Respondent: Shri S.K. Jadhav, CIT DR
Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144C(13)Section 144C(5)Section 92C

erred in upholding action of the Assessing Officer/Ld. TPO in:  not considering Resale Price Method ('RPM') as the most appropriate method for benchmarking the international transaction related to purchase of traded goods under the alleged trading segment. The Appellant prays that the Ld. Assessing Officer/ Ld. TPO be directed ... accept the RPM as the most appropriate method for benchmarking the international transaction related to purchase of traded goods under the alleged trading segment. 8 6. On the facts and in the circumstances of the case and in law, the Ld. DRP has erred in upholding the action

Assistant Commissioner of Income Tax, Jhandewalan Extension, New Delhi vs. Tvarur and Fats Private Limited, New Delhi

In the result, Appeal of the Revenue in ITA No

ITA 3006/DEL/2024[2016-17]Status: DisposedITAT Delhi24 Oct 2025AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.Assistant Commissioner Vs. Tvarur & Fats Pvt. Ltd. Of Income Tax, Unit No. 101, 102A, First Floor, Room No. 332, 3Rd Floor, Plot No. 9, Realtech Copia, Ara Centre, Jhandewalan Corporate Suits, Jasola District Extension, New Delhi Centre, New Delhi Pan: Aaect7561Q Appellant Respondent C.O. No. 83/Del/2024 (In Ita No. 3006/Del/2024) Tvarur & Fats Pvt. Ltd. Vs. Assistant Commissioner Of Unit No. 101, 102A, First Income Tax, Floor, Plot No. 9, Room No. 332, 3Rd Floor, Ara Realtechcopia, Corporate Centre, Jhandewalan Suits, Jasola District Extension, New Delhi Centre, New Delhi Pan: Aaect7561Q Appellant Respondent Assessee By Sh. Ashwani Kumar, Ca & Sh. Aditya Kumar, Ca Revenue By Sh. S. K. Jadhav, Cit(Dr) Date Of Hearing 05/08/2025 Date Of Pronouncement 24/10/2025

Section 92C

emphasized that as per the provisions of section 92C read with Rule 10B, CUP method is universally recognized as the simplest, direct and most appropriate method to arrive at the Arm's Length Price. 9.2 In view of the submission of the appellant and the provisions of Rule ... Tvarur Fats Pvt. Ltd. silent on the reasons as to why the CUP method has not been considered by him as the Most Appropriate Method. 9.5 Before this office, in support of its contention for use of rates listed on KLCE as CUP, the appellant submitted that the provisions

Vodafone Idea Ltd. (Earlier Knwon As Vodafone Mobile Services Ltd.), Mumbai vs. ACIT, . Circle-26(2), New Delhi

In the result, all above said grounds are allowed for statistical purpose

ITA 8361/DEL/2019[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

Bench: Shri S. Rifaur Rahman & Shriyogesh Kumar U.S.Vodafone Idea Ltd Vs. Acit, (Earlier Known As Vodafone Circle-26(2), Mobile Services Ltd) New Delhi 10Th Floor, Birla Centurion, Century Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharastra (Appellant) (Respondent) Pan: Aaacb2100P

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Shri S. K,. Jadav, CIT DR
Section 115JSection 143(3)Section 144C(5)Section 92C

Agreement dated 19.12.2008. Agreement to pay royalty fee @ 0.35% of Net services revenues. The assessee benchmarked the transaction using CUP as the most appropriate method and TNMM at entity level. The assessee benchmarked the transaction with three comparables as under:- Licensor Licensee Rate Jeanmichel Ultrastrip systems 2.00 % Cousteau ocean ... prescribing arms length price for the purpose of section 92C(2) of the Act by using any of the six method as the most appropriate method as enumerated in clause (a) to (f); respectively in the given sequence in chapter 10 of the Act. The last clause (f) relevant

Netflix Entertainment Services India LLP, Mumbai vs. Deputy Commissioner of Income Tax- Circle 23(1), Mumbai

In the result, appeal of the assessee is partly

ITA 6857/MUM/2024[2021-22]Status: DisposedITAT Mumbai17 Oct 2025AY 2021-22
Section 143(3)Section 144C(5)Section 234ASection 270ASection 40

international transaction of payment of distribution fee to its Associated Enterprises, Netflix India applied the Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM) under section 92C of the Income Tax Act, using Operating Profit/Operating Revenue (OP/OR) as the Profit Level Indicator (PLI). 16. The assessee undertook ... Invoking the flexibility of Rule 10AB of the Income-tax Rules, 1962, the TPO adopted the so-called “Other Method" as the Most Appropriate Method (MAM). He contended that this approach was better suited for complex transactions where direct comparables were unavailable. Citing the OECD Guidelines, he noted that

Michael Page International Recruitment Pvt Ltd, Mumbai vs. DCIT Circle 14(1)(1), Mumbai

ITA 6748/MUM/2024[2021-22]Status: DisposedITAT Mumbai16 Oct 2025AY 2021-22
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 153Section 37Section 41Section 92D

Assessee relied upon primary benchmarking study where AEs were considered as tested party; and Transactional Net Margin Method (TNMM) were considered as a Most Appropriate Method with Operating Profit to Total Operating Cost as Profit Level Indicator (PLI). The Assessee also provide corroborative benchmarking taking the Assessee as the tested ... party; TNMM as the Most Appropriate Method with Operating Profits to Sales as PLI. However, the TPO, not being convinced. Rejecting the contentions of the Assessee, the TPO concluded that the Assessee had not been able to substantiate the need for the IGS, the benefits derived from the same

Altera Digital Health (India) LLP (Formerly Known As Allscripts (India) LLP), Vadodara vs. The Dy.CIT, Circle-1(1)(1), Vadodara

In the result, Ground Number 11 of the assessee’s appeal is allowed for statistical purposes

ITA 359/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad15 Oct 2025AY 2018-19

Bench: Smt. Annapurna Gupta (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

Section 92C(1)

operating margin of 15.25% from these services. For benchmarking the international transaction, the assessee adopted the Transactional Net Margin Method (TNMM) as the most appropriate method with Operating Profit/Operating Cost as the Profit Level Indicator. In its transfer pricing study, the assessee had selected eight comparables and computed

Assimilate Solutions India Pvt. Ltd., Delhi vs. DCIT Circle, 1(1), Delhi

In the result, the ground raised by the assessee in this regard is dismissed

ITA 5357/DEL/2024[2021-22]Status: DisposedITAT Delhi15 Oct 2025AY 2021-22

Bench: Shris.Rifaur Rahman & Shri Vimal Kumarassimilate Solutions India Private Limited, Vs. Dcit/Acit, C/O Sanjiv Sapra & Associates Llp, Circle 1 (1), Chartered Accountants, New Delhi. C – 763, New Friends Colony, New Delhi – 110 025. (Pan :Aakca4501H) (Appellant) (Respondent) Assessee By : Shri Sanjiv Sapra, Ar Revenue By : Shri Dharam Veer Singh, Cit Dr Date Of Hearing : 30.07.2025 Date Of Order : 15.10.2025 Order Per S. Rifaur Rahman: 1. The Assessee Has Filed Appeal Against Assessment Order Dated 31.12.2015 Passed By The Assessment Unit, Income Tax Department Under Section 143(3) Read With Section 144C(13)R.W.S. 144B Of The Income-Tax Act, 1961 (For Short ‘The Act”) For Assessment Year 2021-22 Pursuant To The Directions Of The Dispute Resolution Panel U/S 144C(5) Of The Act. 2. M/S. Assimilate Solutions India Private Limited, The Assessee Was Incorporated On 19.04,2012 & Is Engaged In The Business Of Providing

For Appellant: Shri Sanjiv Sapra, ARFor Respondent: Shri Dharam Veer Singh, CIT DR
Section 143(2)Section 143(3)Section 144C(13)Section 144C(5)

with the AE placed at pages 3-53 of PB. 1.6 Transactional net margin (“TNM”) method was selected and considered to be the most appropriate method by the Assessee for justifying its ALP as charged for the services exported to its AE. 1.7 Assessee benchmarked its international transaction with ... vide his order under section 92CA(3) dated 30/10/2023 accepted the TNM method as adopted by the Assessee to be the most appropriate method and also accepted various filters as used by the Assessee for benchmarking purposes except the export filter as applied was not considered to be an appropriate

Lg Electronics India Private Limited, Mathura Road, New Delhi vs. Deputy Commissioner of Income Tax, Delhi

In the result, the appeal of the revenue in ITA No

ITA 433/DEL/2024[2005-06]Status: DisposedITAT Delhi15 Oct 2025AY 2005-06

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

Lg Electronics India Private Limited, New Delhi vs. Deputy Commissioner of Income Tax, Delhi

In the result, the appeal of the revenue in ITA No

ITA 430/DEL/2024[2006-07]Status: DisposedITAT Delhi15 Oct 2025AY 2006-07

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

DCIT, Circle-13(1), New Delhi vs. Lg Electronics India Pvt. Ltd., Delhi

In the result, the appeal of the revenue in ITA No

ITA 2035/DEL/2021[2007-08]Status: DisposedITAT Delhi15 Oct 2025AY 2007-08

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

DCIT, Circle-15(2), New Delhi vs. Lg Electronics India Pvt. Ltd., New Delhi

In the result, the appeal of the revenue in ITA No

ITA 1267/DEL/2020[2007-08]Status: DisposedITAT Delhi15 Oct 2025AY 2007-08

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

Lg Electronics India Pvt. Ltd., New Delhi vs. DCIT, Circle-15(2), New Delhi

In the result, the appeal of the revenue in ITA No

ITA 9000/DEL/2019[2014-15]Status: DisposedITAT Delhi15 Oct 2025AY 2014-15

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

Lg Electronics India Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 5, New Delhi

In the result, the appeal of the revenue in ITA No

ITA 7424/DEL/2018[2013-14]Status: DisposedITAT Delhi15 Oct 2025AY 2013-14

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

Lg Electronics India Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 5, New Delhi

In the result, the appeal of the revenue in ITA No

ITA 6838/DEL/2017[2012-13]Status: DisposedITAT Delhi15 Oct 2025AY 2012-13

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

M/S Lg Electronics India Pvt. Ltd., New Delhi vs. DCIT, Noida

In the result, the appeal of the revenue in ITA No

ITA 991/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Oct 2025AY 2011-12

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

DCIT, Noida vs. M/S. L.G. Electronics India Pvt. Ltd., Greater Noida

In the result, the appeal of the revenue in ITA No

ITA 1969/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Oct 2025AY 2011-12

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Dharm Veer Singh, CIT(DR)

divisions namely 'Appliance and media division- Assembly segment, Appliance and media division- Distribution segment and Telecom division. The assessee has used TNMM as most appropriate method for benchmarking the transactions pertaining to each of these three divisions. However, it is noted that in its TP study report, the assessee ... reiterate that the international transactions entered into by the assessee have been aggregated for the purpose of bench marking applying TNMM as the most appropriate method. The comparables selected by the assessee were earning average margin of 3.70% as against margin of the assessee at 4.70% for manufacturing segment

Franklin Templeton Internaitoanl Services (I) P.Ltd, Mumbai vs. DCIT (OSD) 3(1), Mumbai

In the result the appeal filed by the assessee for assessment year 2007-08 and 2008-09 stands partly allowed

ITA 7216/MUM/2012[2008-09]Status: DisposedITAT Mumbai13 Oct 2025AY 2008-09

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 133(6)Section 92D

Total 83,21,59,988 4.5 From the transfer pricing study report, the Ld.TPO noted that, assessee used TNMM as the most appropriate method and OP/OC as PLI to compute its margin under both segment as under: Particulars ITES Software Total Operating Income 443,412 392,282 834,694 Other

Franklin Templeton International Services (I) P. Ltd, Mumbai vs. Asst CIT 3(1)(OSD), Mumbai

In the result the appeal filed by the assessee for assessment year 2007-08 and 2008-09 stands partly allowed

ITA 6986/MUM/2011[2007-08]Status: DisposedITAT Mumbai13 Oct 2025AY 2007-08

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 133(6)Section 92D

Total 83,21,59,988 4.5 From the transfer pricing study report, the Ld.TPO noted that, assessee used TNMM as the most appropriate method and OP/OC as PLI to compute its margin under both segment as under: Particulars ITES Software Total Operating Income 443,412 392,282 834,694 Other