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“TNMM”

Transfer PricingSection 92CSection 92C2,208 judgments

The decision most relied on for TNMM is Rampgreen Solutions Pvt. Ltd. v. CIT (377 ITR 533), cited in 196 judgments on BharatTax.

Leading authorities on TNMM

Rampgreen Solutions Pvt. Ltd. v. CIT
377 ITR 533 · 2015 · High Court
196
citing judgments

Knowledge Process Outsourcing (KPO) service providers are functionally dissimilar to Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) providers and cannot be compared for transfer pricing purposes, even under the Transactional Net Margin Method (TNMM). Further, companies with significantly different business models, such as those with extensive subcontracting, should be excluded as comparables.

Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT
381 ITR 227 · 2016 · High Court
127
citing judgments

The existence of an international transaction must be established before its arm's length price can be determined. An alleged 'excessive' AMP expenditure cannot unilaterally expand the scope of an international transaction if its existence is contested.

SAP Labs India Pvt. Ltd. v. ACIT
44 SOT 156 · 2011 · ITAT
100
citing judgments

Foreign exchange fluctuation gains or losses are operational in nature and must be included in the computation of the operating margin for both the assessee and comparable companies when determining the Arm's Length Price.

DIT (IT) v. Morgan Stanley & Co Inc.
162 Taxmann 165 · 2007 · Supreme Court
90
citing judgments

The profits of a Permanent Establishment (PE) must be determined on the basis of what an independent enterprise would derive, using the Transactional Net Margin Method (TNMM) for profit attribution. When applying TNMM, the operating profit from an international transaction should be compared with the operating profit margin of comparables.

Ranbaxy Laboratories Ltd. v. ACIT
68 Taxmann.com 322 · 2016 · High Court
55
citing judgments

When benchmarking export transactions, the Associated Enterprise (AE) can be considered the tested party if it possesses the least complex functional analysis. The Assessing Officer's acceptance of a methodology in prior years can also support its use.

Trilogy E-Business Software India (P.) Ltd. v. Dy. CIT
29 Taxmann.com 310 · 2013 · ITAT
48
citing judgments

For Transfer Pricing, this case clarifies that foreign exchange gains can be considered operating revenue for ITES providers, acknowledges the impact of offshore versus onsite development pricing on margins even when using TNMM, and affirms the use of a turnover filter for selecting comparable companies.

Capital IQ Information Systems India Pvt. Ltd. v. DCIT
32 Taxmann.com 21 · 2013 · ITAT
44
citing judgments

A change in depreciation policy impacts an entity's profitability, which is a key factor in assessing its suitability as a comparable company for transfer pricing analysis.

Electronic for Imaging (I) Pvt. Ltd. v. DCIT
85 Taxmann.com 124 · 2017 · ITAT
38
citing judgments

Comparability of a company for transfer pricing purposes must be decided afresh by the TPO after considering the facts recorded in prior tribunal decisions. The tribunal may direct exclusion of comparable companies based on such prior decisions.

Judgments citing TNMM

Global E Business Operations Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the revenue’s appeal is partly allowed for statistical purposes

ITA 418/BANG/2016[2011-12]Status: DisposedITAT Bangalore31 Jan 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Sharath Rao, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(3)

right in fact and in law in seeking exact comparability while searching for comparable companies of the assessee under TNMM method whereas requirement of law and international jurisprudence require seeking similar comparable companies. IT(TP)A No.418 & 250/Bang/2016 Page 11 of 21 2(iii) Whether while seeking the exact comparability ... right in fact and in law in seeking exact comparability, while searching for comparable companies of the assessee under TNMM whereas the requirement of law and international jurisprudence require seeking similar comparable companies? 3(ii) Whether while seeking the exact comparability as mentioned above the panel was right in fact

Asst.C.I.T., Bangalore vs. M/S Global E- Business Operations Pvt. Ltd., Bangalore

In the result, the revenue’s appeal is partly allowed for statistical purposes

ITA 250/BANG/2016[2011-12]Status: DisposedITAT Bangalore31 Jan 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Sharath Rao, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(3)

right in fact and in law in seeking exact comparability while searching for comparable companies of the assessee under TNMM method whereas requirement of law and international jurisprudence require seeking similar comparable companies. IT(TP)A No.418 & 250/Bang/2016 Page 11 of 21 2(iii) Whether while seeking the exact comparability ... right in fact and in law in seeking exact comparability, while searching for comparable companies of the assessee under TNMM whereas the requirement of law and international jurisprudence require seeking similar comparable companies? 3(ii) Whether while seeking the exact comparability as mentioned above the panel was right in fact

Luxottica India Eyewear Pvt. Ltd., Gurgaon vs. ACIT, Circle- 15(2), New Delhi

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

ITA 8259/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Jan 2022AY 2014-15

Bench: Sh. Saktwit Dey & Sh. N. K. Billaiya

Section 143Section 92B

circumstances of the case and in law, the Hon'ble DRP/ Ld. AO/ Ld. TPO have erred in using Transactional Net Margin Method ("TNMM") to determine the arm's length nature of the alleged international transaction by comparing the net margin earned by the Appellant with adjusted net margins ... Description of the | Method Amount (In No. | transactions Applied INR) i. Import of finished goods | RPM 1,555,583,988 ii. Payment of software |TNMM 46,476,832 licensing fee iii. Payment of IT support |TNMM 4,553,118 charges and rental iv. Reimbursement of | Other method

Swiss Re Global Business Solutions India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-6(1)(2), Bangalore

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

ITA 397/BANG/2021[2016-17]Status: DisposedITAT Bangalore21 Jan 2022AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 133(6)

following international transactions with its Associated Enterprises (AEs): Amount Amount Method International Transactions Received/Receivable Paid/Payable Provision of back office 1,76,41,00,100 TNMM support service Other Method Reimbursement of expenses 2,65,95,152 to AE 5421424 Other Method Reimbursement of expenses by AE 7. The financials ... plea of the assessee that this company is into high end ITES service provider, and hence not comparable, the DRP held that under TNMM, there is no requirement that the comparables should render the same or identical services. It would be sufficient, if the services fall under the broad industry

ACIT, Circle- 6(1), New Delhi vs. Ch2M Hill (India) Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 5525/DEL/2018[2014-15]Status: DisposedITAT Delhi21 Jan 2022AY 2014-15

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Shri Ajit Jain, CAFor Respondent: Shri Mrinal Kumar Das, Senior DR
Section 143(3)Section 92C

Other Method 4. In order to benchmark the international transaction of receipt of technical consultancy services, the assessee had adopted TNMM as the most appropriate method. The assessee had taken a set of 8 companies with an average margin of 12.14% and had used multiple years data. The assessee ... providing technical services to the assessee. In order to benchmark, the said international transaction of receipt of technical consultancy services, the assessee adopted TNMM as the MAM and after taking a set of 8 comparables, average margin of 12.14% was worked out and the assessee had shown

Dhr Holding India Pvt. Ltd., New Delhi vs. Addl.CIT, Special Range-3, New Delhi

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

ITA 1614/DEL/2018[2013-14]Status: DisposedITAT Delhi21 Jan 2022AY 2013-14

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Shri Ajit Jain, CAFor Respondent: Shri Surender Pal, CIT DR
Section 143(3)Section 271Section 92BSection 92C

imported goods not appreciating that the medical equipment could not have been imported at Nil price. 2.2 Arbitrarily rejecting the Transactional Net Margin Method ('TNMM') applied by the assessee and making an arbitrary adjustment without applying any of the specified methods, thereby disregarding Rule 10B and Rule ... above international transaction was closely linked to the assessee’s business of trading of medical equipment, the Transactional Net Margin Method (‘TNMM’) analysis was used to benchmark the arm’s length nature of the international transaction of purchase of medical equipment. The Ld. TPO while accepting the purchase price

Xchanging Solutions Limited, Bangalore vs. ITO, Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 556/BANG/2016[2011-12]Status: DisposedITAT Bangalore19 Jan 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

facts, by incorrectly applying the CUP method for determining the ALP of the impugned transaction and overlooking the fact that TNMM is most appropriate under the facts and circumstances since the expenses are closely linked to provision of services. IT(TP)A No.492 & 451/B/2015 & 402 & 556/B/2016 Page ... applied. The Act does not say that ALP should be done at the enterprise level or the segment level or once the TNMM or any other method is applied at the segment level, ALP of all the international transactions is established. As payments made towards intra group service charges

ITO, Bangalore vs. M/S Xchanging Solutions Ltd., Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 402/BANG/2016[2011-12]Status: DisposedITAT Bangalore19 Jan 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

facts, by incorrectly applying the CUP method for determining the ALP of the impugned transaction and overlooking the fact that TNMM is most appropriate under the facts and circumstances since the expenses are closely linked to provision of services. IT(TP)A No.492 & 451/B/2015 & 402 & 556/B/2016 Page ... applied. The Act does not say that ALP should be done at the enterprise level or the segment level or once the TNMM or any other method is applied at the segment level, ALP of all the international transactions is established. As payments made towards intra group service charges

Xchanging Solutions Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 492/BANG/2015[2010-11]Status: DisposedITAT Bangalore19 Jan 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

facts, by incorrectly applying the CUP method for determining the ALP of the impugned transaction and overlooking the fact that TNMM is most appropriate under the facts and circumstances since the expenses are closely linked to provision of services. IT(TP)A No.492 & 451/B/2015 & 402 & 556/B/2016 Page ... applied. The Act does not say that ALP should be done at the enterprise level or the segment level or once the TNMM or any other method is applied at the segment level, ALP of all the international transactions is established. As payments made towards intra group service charges

DCIT, Bangalore vs. M/S Xchanging Solutions Ltd., Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 459/BANG/2015[2010-11]Status: DisposedITAT Bangalore19 Jan 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

facts, by incorrectly applying the CUP method for determining the ALP of the impugned transaction and overlooking the fact that TNMM is most appropriate under the facts and circumstances since the expenses are closely linked to provision of services. IT(TP)A No.492 & 451/B/2015 & 402 & 556/B/2016 Page ... applied. The Act does not say that ALP should be done at the enterprise level or the segment level or once the TNMM or any other method is applied at the segment level, ALP of all the international transactions is established. As payments made towards intra group service charges

Olympus Medical Systems India Pvt. Ltd., Gurugram vs. ACIT, Circle- 3(1), Gurugram

In the result, appeal of the assessee in ITA No

ITA 873/DEL/2021[2016-17]Status: HeardITAT Delhi13 Jan 2022AY 2016-17

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Nageshwar Rao, AdvFor Respondent: Shri Mahesh Shah, CIT-DR
Section 143(3)Section 144B

grounds, even if AMP is considered as an international transaction, the TPO has himself considered AMP costs as part of Transaction Net Margin Method (“TNMM”) analysis while benchmarking import transaction and the same has been considered to be at arm’s length. Without prejudice to the above grounds ... failed to take note of companies which had same level of AMP expenses and use the same to apply aggregation approach using TNMM. 13. Ld. AO / TPO / DRP erred in not benchmarking AMP using the adjusted Resale Price Method (‘RPM’). 14. Ld. AO / TPO / DRP proposes adjustment to the value

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

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

ITA 227/BANG/2021[2016-17]Status: DisposedITAT Bangalore12 Jan 2022AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Ketan K. Ved, CAFor Respondent: Shri Sunil Kumar Singh, CIT(DR)(ITAT), Bengaluru
Section 143(3)

assessee has entered into the following International Transactions to its Associated Enterprises (AEs): Particulars Amt (Paid) Amt (Recd) Method Fixed Assets 19,65.937 TNMM 50,67,98,222 TNMM Provision of Support Services in relation to configuration of clinical trial study 8,79,51,560 TNMM Provision of Software Development ... expenses 3,32,97,976 Other 95,28,094 Other Reimbursement of expenses to AE IT(TP)A No.227/Bang/2021 Page 9 of 23 TNMM Outstanding Trade and Other receivables 94,55,542 TNMM Outstanding Trade and Other payables

M/S Arctern Consulting Pvt Ltd, Bangalore vs. Income Tax Officer Ward-1(1)(2), Bangalore

ITA 352/BANG/2019[2009-10]Status: HeardITAT Bangalore11 Jan 2022AY 2009-10
Section 143(3)Section 144CSection 92(1)

Transfer Pricing Study (TP Study) to justify the price paid in the international Transaction as at ALP by adopting the Transaction Net Margin Method (TNMM) as the Most Appropriate Method (MAM) of determining ALP. The Assessee selected Operating Profit/Operating Cost (OP/OC) as the Profit Level Indicator (PLI) for the purpose

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

In the result, the appeal is partly allowed

ITA 3188/BANG/2018[2005-06]Status: DisposedITAT Bangalore11 Jan 2022AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2005-06 M/S. Infor (Bangalore) Private Limited, Vs. Dcit, (Previously Softbrands India Private Ltd. & Circle – 3(1)(1), Now Merged With Infor India Private Ltd.,), Bengaluru. 302, 3Rd Floor, Prestige Sigma, #3, Vittal Mallya Road, Bengaluru – 560 001. Pan : Aafcs 9041 K Appellant Respondent Assessee By : Shri. Srinivas K P, Ca Revenue By : Shri. Priyadarshi Mishra, Addl. Cit(Dr)(Itat), Bengaluru Date Of Hearing : 11.01.2022 Date Of Pronouncement : 11.01.2022 O R D E R

For Appellant: Shri. Srinivas K P, CAFor Respondent: Shri. Priyadarshi Mishra, Addl. CIT(DR)(ITAT), Bengaluru
Section 92(1)Section 92C

Transfer Pricing Study (TP Study) to justify the price paid in the international Transaction as at ALP by adopting the Transaction Net Margin Method (TNMM) as the Most Appropriate Method (MAM) of determining ALP. The Assessee selected Operating Profit/Operating Cost (OP/OC) as the Profit Level Indicator (PLI) for the purpose ... Length. 4. The Transfer Pricing Officer (TPO) to whom the determination of ALP was referred to by the AO, accepted TNMM as the MAM and also used the same PLI for comparison i.e., OP/TC. He also selected comparable companies from database. The TPO identified 17 companies as comparable with

DCIT, Circle- 12(2), New Delhi vs. In Trading Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 3712/DEL/2018[2011-12]Status: DisposedITAT Delhi10 Jan 2022AY 2011-12

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 3712/Del/2018 : Asstt. Year : 2011-12 Dcit, Vs In Trading Pvt. Ltd., Circle-12(2), D-15, Geetanjali Enclave, New Delhi New Delhi-110017 (Appellant) (Respondent) Pan No. Aabci0777J Assessee By : None Revenue By : Sh. Mrinal Kumar Das, Sr. Dr Date Of Hearing: 06.01.2022 Date Of Pronouncement: 10.01.2022

For Appellant: NoneFor Respondent: Sh. Mrinal Kumar Das, Sr. DR

Following grounds have been raised by the revenue: “1. Whether the order of ld. CIT(A) is perverse in accepting the internal TNMM of the assessee ignoring the fact that the assessee company has been changing its stand before the authorities and even offered adjustment under external TNMM during

Serco India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal of the assessee is allowed

ITA 1460/DEL/2014[2009-10]Status: DisposedITAT Delhi10 Jan 2022AY 2009-10

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 1460/Del/2014 : Asstt. Year : 2009-10 Serco India Pvt. Ltd., Vs Dcit, 6Th Floor, Tower-B, Building No. 8, Circle-2, Dlf Cyber City, Phase-Ii, Gurgaon Gurgaon (Appellant) (Respondent) Pan No. Aajcs6704P Assessee By : Sh. Suraj Bhan Nain, Ca Revenue By : Sh. M. Baranwal, Sr. Dr Date Of Hearing: 04.01.2022 Date Of Pronouncement: 10.01.2022

For Appellant: Sh. Suraj Bhan Nain, CAFor Respondent: Sh. M. Baranwal, Sr. DR
Section 10ASection 143(3)Section 144C(13)Section 234BSection 271(1)(c)Section 92C

transaction Pricing Indicate [“PLI”] of Method transactions (Rs.) Provision of IT Services Transactional Operating 18,96,85,540 Net Margin Profit/ Method Operating Cost (TNMM) [OP/OC] Receipt of share application - - 48,07,39,005 money Issue of share capital - - 4,38,38,060 Recovery of expenses ... Study, the assessee has benchmarked its international transactions relating to software development services using TNMM as the most appropriate method with OP/OC as PLI. In the TP Report, a final set of 8 comparables had been taken with average PLI of 16.08% as under: S. Name of the Company

Nomura Services India P. Ltd, Mumbai vs. DCIT 10(3), Mumbai

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

ITA 2303/MUM/2013[2008-09]Status: DisposedITAT Mumbai06 Jan 2022AY 2008-09

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadalenomura Services India Vs. Dcit – Circle 10(3) Pvt Ltd., Aayakar Bhavan, 10Th Floor, Nomura, Mk Road, Off High Street, Mumbai – 400020. Hiranandani Business Park, Powai, Mumbai – 400076. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcl0053C Appellant .. Respondent Appellant By : Mr.Faruk Irani & Mr Sumin Mehta.Ar Respondent By : Mrs.Vatsala Jha. Dr Date Of Hearing 23.11.2021 Date Of Pronouncement 10.01.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Passed U/S 143(3) R.W.S 144C(13) Of The Act In Pursuance To Directions Of The Dispute Resolution Panel (Drp) U/Sec144C(5) Of The Act Dated 07.09.2012. Nomura Services India P Ltd., Mumbai. 2. The Assessee Has Filed The Fallowing Grounds Of Appeal As Under:

For Appellant: Mr.Faruk Irani &For Respondent: Mrs.Vatsala Jha. DR
Section 143(3)

Software ltd 6.54 26 TataElxsi 18.97 Arithmetic Mean 17.33 Nomura Services India P Ltd., Mumbai. 5. The TPO find that the assessee has applied TNMM as Most Appropriate Method (MAM) and the operating margin/Profit Level Indicator (PLI) i.e operating profit to operating cost (OP/OC) @ 20%. The TPO has issued notice ... including income processing, reconciliations, MIS reporting, finance and accounting support, credit risk report generation, journal validation, posting of entries.The assessee has applied TNMM as Most Appropriate Method (MAM) and the operating margin/Profit Level Indicator (PLI) i.e. operating profit to operating cost (OP/OC) @ 18%. The assessee has identified 16 companies

Gbt India Private Limited, Delhi vs. National E-Assesment Centre, New Delhi

In the result, the appeal of the assessee is allowed and Stay application is accordingly held to be infructuous

ITA 462/DEL/2021[2016-17]Status: DisposedITAT Delhi06 Jan 2022AY 2016-17

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing)

For Appellant: Shri Himanshu Sinha, Adv. &For Respondent: Shri Surendra Pal
Section 143(3)Section 144C(13)

follows: "15. We have given thoughtful consideration to the orders of the authorities below and the rival contentions. There is no dispute that TNMM has been accepted as the most appropriate method. It is equally true that the TPO has singled out one transaction and applied CUP as most appropriate ... held that when intra group services are linked to the main business activity of the company, they should be bench marked by adopting TNMM. The relevant findings of the Hon'ble High Court read as under: 17. As far as the second question is concerned, the TPO accepted TNMM applied

M/S. Randox Laboratories India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 5(1)(1), Bangalore

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

ITA 2576/BANG/2019[2015-16]Status: DisposedITAT Bangalore04 Jan 2022AY 2015-16

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.2576/Bang/2019 Assessment Year : 2015-16 M/S. Randox Laboratories India Vs. The Asst.Commissioner Of Private Limited, Income Tax, Plot No.191-195 & 246-250, Circle 5(1)(1), Bommasandra-Jigani Link Road, Bengaluru. Kiadb Industrial Area, Bengaluru – 560 105. Pan: Aadcr 0074 K Assessee Respondent

For Appellant: Shri S. Krishna Upadhyaya, CAFor Respondent: Shri Sumeer Singh Meena, CIT(DR-OSD), ITAT, Bangalore
Section 143(3)Section 144CSection 92Section 92ASection 92CSection 92F

Revenue is with regard to which is the most appropriate method (MAM) for determination of ALP, whether it is Transaction Net Margin Method (TNMM) as contended by the revenue or the Resale Price Method (RPM) as contended by the Assessee. 6. It was the plea of the Assessee that ... Assessee had considered as the IT(TP)A No.2576/Bang/2019 Page 4 of 23 Most Appropriate Method (MAM) and instead chose Transactional Net Margin Method (TNMM) as the MAM. Further, the TPO also rejected the TP study conducted by the Assessee and passed the order u/s 92CA

M/S Software Paradigms Infotech Private Limited, Mysore vs. Assistant Commissioner of Income Tax Circle-1(1), Mysore

ITA 2828/BANG/2017[2013-14]Status: DisposedITAT Bangalore27 Dec 2021AY 2013-14

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(Tp)A No. 2828/Bang/2017 Assessment Year : 2013-14 M/S. Software Paradigms The Assistant Infotech Pvt. Ltd., Commissioner Of No. 316-318, Spi City, Income Tax, Hebbal Industrial Area, Circle – 1 (1), Mysuru – 570016. Mysuru. Vs. Pan: Aalcs7583C Appellant Respondent Assessee By : Shri G.S. Prashanth, Ca Revenue By : Shri Pradeep Kumar, Cit (Dr) Date Of Hearing : 29-11-2021 Date Of Pronouncement : 27-12-2021 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Assessment Order Dated 24.10.2017 Passed By The Acit, Circle – 1 (1), Mysuru U/S. 143(3) R.W. 92Ca R.W. 144C(5) Of The Act For Assessment Year 2013-14 On Following Grounds Of Appeal. 1. The Orders Of The Tpo / Drp / Assessing Officer In So Far As They Are Against The Appellant, Are Opposed To Law, Weight Of Evidence, Natural Justice, Probabilities, Facts & Circumstances Of The Appellant'S Case. 2. The Appellant Denies Itself To Be Assessed On A Total Income Of Rs. 10,50,75,429/- As Against Income Of Rs. 6,77,58,220/- As Declared By The Appellant.

For Appellant: Shri G.S. Prashanth, CAFor Respondent: Shri Pradeep Kumar, CIT (DR)
Section 143(3)Section 92C

Particulars Rs.) Software Development 64,54,53,564 Services IT Enabled Services 1,82,24,266 5. The Ld.TPO observed that assessee used TNMM as most appropriate method with OP/TC as PLI. It computed its margin at 13.90% under SWD segment and 13.1% for ITeS services. Assessee used following ... also engaged in servicing the residential mortgage industry and also providing full spectrum of mortgage technology services for its group companies and adopted TNMM method for international transactions. The learned AR contention that Infosys BPO Ltd., is providing high end integrated services and also diversified services like business platforms, customer