“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

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

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

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

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

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

Emerson Electric Company (India) Private Limited, Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO, Delhi

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

ITA 555/MUM/2022[2017-18]Status: DisposedITAT Mumbai14 Aug 2023AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Sandeep Singh Karhail

For Appellant: Shri Dinesh Bafna a/wFor Respondent: Shri R.S. Srivastav

Section 142(1)Section 143(2)Section 143(3)Section 144C(1)Section 144C(13)Section 144C(5)Section 92C

support service, support for administration of server hosting and related services, etc.” 8. For benchmarking this transaction, the assessee used Transactional Net Margin Method (“TNMM”) as the most appropriate method with the Profit Level Indicator (“PLI”) of Operating Profit to Total Cost (“OP/TC”). By considering itself as the tested party ... products to the customers based on their requirements. Emerson Electric Company (India) Pvt. Ltd. ITA no.555/Mum./2023 For benchmarking this transaction, the assessee used TNMM as the most appropriate method with PLI of OP/TC. By considering itself as the tested party, the assessee identified five comparable companies with an average

Emerson Network Power (India) P.Ltd, Thane vs. Addl CIT RG 1, Thane

In the result, both the appeals of the assessee are partly allowed

ITA 2286/MUM/2017[2012-13]Status: DisposedITAT Mumbai14 Aug 2023AY 2012-13

Section 143(3)

Solutions & KAM o Information Technology o Logistic o Finance 8. In its Transfer Pricing Study Report (the TPSR) the assessee benchmarked the transaction following TNMM the most appropriate method and treating AE as tested party with mark- up of 5.8%. The TPSR also provides for the types of services rendered ... part of the data and drew confusion, which is not warranted in any case." M/s. Emerson Network Power (India) Pvt. Ltd. Findings on TNMM: The assessee has applied TNMM method and made comparison with the margins of concerns selected from foreign data base and had shown that the margins shown

Emerson Network Power (India) Pvt. Ltd., Thane vs. DCIT Cir. 1, Thane

In the result, both the appeals of the assessee are partly allowed

ITA 2120/MUM/2016[2011-12]Status: DisposedITAT Mumbai14 Aug 2023AY 2011-12

Section 143(3)

Ahlstrom Fiber Composites (I) P. Ltd., Mundra (Kutch) vs. The Asstt. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 85/RJT/2017[2012-13]Status: DisposedITAT Rajkot04 Aug 2023AY 2012-13

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

case and in law, the Ld. AO/TPO erred in rejecting cost plus method (CPM) adopted by the Appellant and selecting Transactional Net Margin Method (TNMM) as the most appropriate method to determine the Arm's Length Price of the transaction of sale of goods to AEs. 1.4. Without prejudice ... erred in selecting certain functionally dissimilar companies as comparable to benchmark the international transaction of sales of goods to AEs under TNMM approach. The Appellant prays that the addition made by the Ld. AO / TPO in relation to the international transaction of sales to AE be deleted. ITA (TP)No.97/RJT/2016

Ahlstrom Fiber Composites (I) P. Ltd., Mundra (Kutch) vs. The Asstt. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 287/RJT/2017[2013-14]Status: DisposedITAT Rajkot04 Aug 2023AY 2013-14

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

Ahlstrom Fibercomposites India Pvt. Ltd., Mundra (Kutch) vs. The Dy. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 97/RJT/2016[2011-12]Status: DisposedITAT Rajkot04 Aug 2023AY 2011-12

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

Egis International S.A., New Delhi vs. ACIT, Circle-Int. Tax 1(2)(2), New Delhi

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

ITA 1663/DEL/2021[2016-17]Status: DisposedITAT Delhi03 Aug 2023AY 2016-17

Bench: Shri M. Balaganesh & Ms. Astha Chandraasstt. Year: 2016-17 Egis International S.A. Vs. Acit T-305, Tf, Circle-1Nt. Tax 1(2)(2) Tirupati Plaza, New Delhi. Sector-11 (Mlu), Pocket 4, Plot No. 11 Dwarka, New Delhi – 110 075. Pan Aabcb7760L (Appellant) (Respondent)

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Manu Chaurasia, Sr. DR

Section 92C(3)

Total value international of transaction transaction MAM PLI (Rs.) 1. Provision of Technical TNMN OP/OR 3,06,01,583 services 2. Availing of Sub- TNMM OP/OR 24.05.58,400 Consultancy Services 3. Payment Of Rent & CUP - 873980 Maintenance Charges 4. Payment Of Finance CUP - 17.48,423 & Administration Charges 5. Bank Guarantee ... Other Method - - 6. Reimbursement of TNMM OP/OC 4,09,39,634 Expenses 5. The Ld. Assessing Officer (“AO”) referred the case to Ld. Transfer Pricing Officer (“TPO”) who passed an order on 28.10.2019 under section 92CA(3) of the Income Tax Act, 1961 (the “Act”) proposing the cumulative adjustment

Pr. CIT-9, Mumbai vs. E-Clinical Works India Pvt Ltd, Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 4106/MUM/2019[2014-15]Status: DisposedITAT Mumbai31 Jul 2023AY 2014-15

Bench: Us, Ld. Counsel For The Assessee At The Outset Submitted That Even If One Comparable, I.E., M/S. Mps Limited Is Excluded, Then Other Two Comparables Even If They Are Not To Be Included Will Become Purely Academic Because Assessee Would Be Within The Arm’S Length Price.

Section 143(3)

respect of provision of IT enabled services of Rs.120,42,18,944/-. The assessee 9 E-Clinical Works India Pvt. Ltd. company had applied TNMM as the Most Appropriate Method and submitted its margin on that profit before interest, depreciation and tax upon operating cost at 21.05% and reported that

Nikon India P.Ltd, Gurgaon vs. ACIT, Circle-3(1), Gurgaon

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

ITA 1800/DEL/2022[2017-18]Status: DisposedITAT Delhi27 Jul 2023AY 2017-18

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.Assessment Year: 2017-18 & Stay Application No.256/Del/2022 (Ita No.1800/Del/2022) Assessment Year: 2017-18 Nikon India Pvt. Ltd., Vs Acit, Plot No.71, Sector-32, Circle-3(1), Institutional Area, Gurgaon. Gurgaon, Haryana – 122001. Pan: Aaccn5100F (Appellant) (Respondent) Assessee By : Shri Vishal Kalra & Shri Ankit Sahani, Advocates; & Shri Yishu Goel, Ar Revenue By : Shri Rajesh Kumar, Cit-Dr Date Of Hearing : 19.07.2023 Date Of Pronouncement : 27.07.2023 Order Per M. Balaganesh, Am: The Appeal In Ita No.1800/Del/2022 & The Stay Application In Sa No.256/Del/2022 Filed By The Assessee Arise Out Of The Order Of Assessment Passed U/S 143(3) R.W.S. 144C(13) R.W.S. 144B Of The Income-Tax Act, 1961 Sa No.256/Del/2022 (Hereinafter Referred To As ‘The Act’) Dated 25.07.2022 By The Assessment Unit, Of The Income Tax Department (Hereinafter Referred To As ‘Ld. Ao’).

For Appellant: Shri Vishal Kalra &For Respondent: Shri Rajesh Kumar, CIT-DR

Section 143(3)Section 144C(5)Section 92C

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I : DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR

Franklin Wardcorpp India Pvt. Ltd., Mumbai vs. Addll./Jt/ACIT, NFAC, Delhi

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

ITA 2487/MUM/2021[2017-18]Status: DisposedITAT Mumbai26 Jul 2023AY 2017-18

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao &For Respondent: Ms. Vranda U. Matkari, DR

Section 143(3)Section 144BSection 144C(13)

circumstances of the case, the Hon‟ble Dispute Resolution Panel (“DRP”) was not justified in endorsing the Transactional Net Margin Method („TNMM‟), as used the Transfer Pricing Officer („TPO‟), for the purpose of determining the Arms length Price („ALP‟) of the concerned transaction with as its Associated Enterprise ... category of auto spare parts and in using data of auto spare parts companies for the purpose of arriving the ALP under the TNMM. 3. On the facts and in the circumstances of the case, the Hon‟ble DRP was not justified in rejecting the contention of the Appellant that

Franklin Wardcorpp India P. Ltd., Mumbai vs. Addl/Jt/Dy/DIT/Asstt/ITO, National E-Assessment Centre, Delhi

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

ITA 1279/MUM/2021[2016-17]Status: DisposedITAT Mumbai26 Jul 2023AY 2016-17

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao &For Respondent: Ms. Vranda U. Matkari, DR

Section 143(3)Section 144BSection 144C(13)

Sas Institute (India) P. Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

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

ITA 1567/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Jul 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Dy. Commissioner Of Income- M/S Sas Institute (India) Private Tax, Circle 3(3) Limited Apeejay House, 3 Rd Floor, Aaykar Bhavan, Vs. 3, Dinshaw Wachha Road, Maharshi Karve Road, Mumbai-400 020 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaecs3149K Assessee By : Shri M.P. Lohia, Ar Revenue By : Ms. Vranda U.Matkari, Dr Date Of Hearing: 28.04.2023 Date Of Pronouncement : 26.07.2023

For Appellant: Shri M.P. Lohia, ARFor Respondent: Ms. Vranda U.Matkari, DR

Section 140Section 143(3)Section 144CSection 144C(13)Section 144C(5)

losses to the Appellant Le due to external factors 4. Inappropriately rejecting comparable uncontrolled price method (CUP) and using transactional net margin method (TNMM") for benchmarking royalty transaction Erred by not considering CUP as the most appropriate method adopted by the Appellant for benchmarking its international transaction pertaining to payment ... royalty and inappropriately adopting TNMM as the most appropriate method 5. Inappropriately considering functionally different companies as comparable for benchmarking royalty and software licensing revenue sharing transactions Without prejudice to the above grounds of appeal, erred by concluding that companies engaged in rendering technical support services are comparable

M/S. Bhatia Global Trading Ltd., Indore vs. The DCIT 1(1), Indore

In the result, appeal of assessee is partly allowed

ITA 247/IND/2017[2012-13]Status: DisposedITAT Indore26 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanibhatia Global Trading Ltd. Dcit 1(1) Through Official Liquidator Indore Old Cia Building, 1St Floor Vs. Opp. G.P.O. Residency Area, Indore (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaacb6751 C Assessee By None Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 10.05.2023 Date Of Pronouncement 26 .07.2023

Section 143(3)Section 144C(13)Section 144C(5)Section 14A

assesse has reported International transactions with associated Enterprises (AE). The details of the international transactions and benchmarking done by the assessee by adopting TNMM as most appropriate method are given at page no.2 & 3 of the DRP as under: Sr. Description of Amount Method P PLI PLI of Method adjustment ... BGTL to AE ,900 from IOF P. ltd. method is compared (IOF Pt.) with Balte Dry Index 3 Availing 46,80,82 TNMM The Accepted to procurement 1 Procurement be at arm’s agency services commission length from PT Bhatia paid by BGTL International (PT to AE is Bhatia) compared

Sabre Travel Network (India) P.Ltd, Mumbai vs. DCIT 6(1)(1), Mumbai

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

ITA 1056/MUM/2017[2008-09]Status: DisposedITAT Mumbai25 Jul 2023AY 2008-09

Bench: Vikas Awasthy () & Ms. Padmavathy S. ()

Section 143(3)Section 144C(13)Section 234BSection 234CSection 271(1)Section 92C

transfer pricing study with respect to the marketing services rendered to its AE has applied entity level transaction under net margin method (TNMM) for benchmarking provision of marketing services and has arrived at berry ratio of 1.12 as per below workings:- Particulars Amount Amount (Rs.) (Rs.) Commission

Relaxo Footwear Ltd., Delhi vs. Assessing Officer, National E- Assesment Centre, New Delhi

In the result, the appeal of the assessee is allowed

ITA 590/DEL/2021[2016-17]Status: FixedITAT Delhi20 Jul 2023AY 2016-17

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year: 2016-17 Relaxo Footwear Ltd., Vs Assessing Officer, Plot No.10, Aggarwal City Square, National E-Assessment Centre, Manglam Place Sec.3, New Delhi. New Delhi – 110 085. Pan: Aaacr0259D (Applicant) (Respondent) Assessee By : Shri Ved Jain, Ca Revenue By : Shri R.D. Burman, Cit-Dr Date Of Hearing : 26.06.2023 Date Of Pronouncement : 20.07.2023 Order Per M. Balaganesh, Am: This Appeal In Ita No.590/Del/2021 For Ay 2016-17 Arises Out Of The Order Of The National E-Assessment Centre, Delhi (Hereinafter Referred To As ‘Ld. Ao’) Passed U/S 143(3) R.W.S. 144C & 144C(13) R.W.Ss 143(3A) & 143(3B) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 30.03.2021. 2. Though The Assessee Has Raised Several Grounds Before Us, The Only Effective Issue To Be Decided In This Appeal Is As To Whether The Ld. Ao Was Justified In Making Transfer Pricing Adjustment Of Rs.91,04,673/- Pursuant To The Directions Of The Ld. Drp In Respect Of The Specified Domestic Transactions.

For Appellant: Shri Ved Jain, CAFor Respondent: Shri R.D. Burman, CIT-DR

Section 143(3)Section 144C(5)Section 3Section 80I

rejected the Cost Plus method adopted by the assessee as the Most Appropriate Method (MAM) and substituted the same with Transactional Net Margin Method (TNMM). The ld. TPO identified six comparables by adopting the Profit Level Indicator (PLI) as Operating Profit/Operating Cost (OP/OC) and arrived at the average margin ... only result in restriction of deduction u/s 80IC of the Act. It was accordingly contested that no addition is warranted even on application of TNMM even if the margin proposed by the TPO is assumed to be correct. Further, on without prejudice basis, it was argued that the addition

Sunil and Company, Jodhpur vs. DCIT, Circle-1, Jodhpur

In the result, the appeal is dismissed

ITA 35/JODH/2022[2014-15]Status: DisposedITAT Jodhpur14 Jul 2023AY 2014-15

Section 92C

therefore asked the appellant to justify use of PSM method. As the appellant did not submit any justification, the PSM was rejected and TNMM was applied After applying appropriate hers, the AO arrived at a set of four comparables. OP/Sales was chosen as The PLL The average OP/Sales of comparables

Gbt India Private Limited, New Delhi vs. ACIT, OSD, Delhi

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

ITA 1763/DEL/2022[2017-18]Status: DisposedITAT Delhi14 Jul 2023AY 2017-18

For Appellant: Shri Himanshu S. Sinha, AdvocateFor Respondent: Shri Jitender Kumar, CIT DR

Section 43BSection 92C

erred in determining the Arm's Length Price ("ALP") of Forward Transition Support Service Charges at NIL by rejecting the Transactional Net Margin Method ("TNMM") applied by the Appellant and applying Comparable Uncontrolled Price method ("CUP") and making an upward adjustment of Rs.8,92,28,190/-. 9. That

Sona Blw Precision Forgings Ltd., New Delhi vs. Addl. CIT, Special Range-8, New Delhi

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

ITA 525/DEL/2019[2013-14]Status: DisposedITAT Delhi14 Jul 2023AY 2013-14

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar

For Appellant: Ms. Aditi Gupta, ARFor Respondent: Shri Rajesh Kumar, CIT (DR)

Section 143(3)Section 92C

erred in facts and law by upholding the partial addition even though the operating margin of the assessee as per accepted benchmark method of TNMM, was within acceptable range even after considering the Transfer Pricing Officer's adjustment on corporate guarantee fee.” 3. The facts in brief are that

Alliance One Industries India Private Limited, Hyderabad vs. Deputy Commissioner of Income Tax Circle 1(1), Guntur

In the result, appeal of the assessee is partly allowed

ITA 68/VIZ/2022[2017-2018]Status: DisposedITAT Visakhapatnam14 Jul 2023AY 2017-2018

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri K.C. Devdas, ARFor Respondent: Sri MN Murthy Naik, CIT-DR

Section 143(1)Section 143(2)Section 143(3)Section 92C

Total amount Method No Enterprises International paid / received Transaction or payable / receivable in the transaction 1. Alliance One Sale of 174,45,58,168 TNMM International AG unmanufactured Switzerland tobacco and its by- products on FOB basis 2. Alliance one Sale of 13,12,79,824 TNMM International AG, unmanufactured ... Switzerland tobacco and its by- products on CIF basis 3. Alliance one Sale of 10,32,13,440 TNMM International Inc, unmanufactured USA tobacco and its by- products on FOB basis 4. Alliance one Purchase of software 2,46,875 CUP Method International AG, License Switzerland 5. Alliance one Advance

Accenture Solutions P Ltd (Asol), Mumbai vs. Addl/Jt/ Dy/CIT/Asstt/ITO, National Faceless Assessment Centre, Delhi & the Dy CIT, Circle-14(1)(1), Mumbai

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

ITA 1255/MUM/2021[2016-17]Status: DisposedITAT Mumbai13 Jul 2023AY 2016-17

Bench: Shri Amit Shukla & Shri Amarjit Singhaccenture Solutions Vs. Additional/Joint/Deputy/ Private Limited (‘Asol’) Assistant Commissioner Plant 3, Godrej & Boyce Of Income Tax/Income- Complex, Phirojshah Tax Officer, National Nagar, Vikhroli West, Facelless Assessment Off L.B.S Marg, Centre, Delhi Mumbai – 400079 The Dcit, Circle 14(1)(1) स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaach3235M Appellant .. Respondent Appellant By : Nishant Thakkar/ Hiten Chande/ Ms. Jasmin Amalsadvala Respondent By : Azhar Zain Vayal Parambath Date Of Hearing 22.05.2023 Date Of Pronouncement 13.07.2023 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assesse Is Directed Against The Order Passed By The Ao (National Assessment Centre) Mumbai- 2, Dated 18.03.2021 For A.Y. 2016-17 As Per The Direction Of The Drp Issued U/S 144C (5) Of The Act. The Assessee Has Raised The Following Grounds Before Us: “On The Facts & Circumstances Of The Case & In Law, The Learned Ao Transfer Pricing Officer (Tpo), Based On The Directions Of The Hon'Ble Drp Has: General Ground 1. Erred In Assessing The Total Income Of The Appellant At Rs.2888,33,73,016 Against A Total Income Of Rs.2179,39,30,620 As Reported By The Appellant In Its Revised Return Of Income & Determining A Demand Of Rs.2186,98,55,847 Payable By The Appellant.

For Appellant: Nishant Thakkar/ Hiten Chande/For Respondent: Azhar Zain Vayal Parambath

Section 144CSection 92CSection 92C(3)

prejudice to the contention that CUP method is the most appropriate method for benchmarking the royalty transaction, erred in rejecting the alternate analysis using TNMM that was submitted by the Appellant for benchmarking the royalty transaction. Proportionate adjustment P a g e | 4 Accenture Solutions Private Limited Vs. Add/Joint/Deputy/ACIT/ITO ... Without prejudice to the contention that the royalty transaction was found to be at arm's length even under the alternate TNMM analysis, even if an adjustment is to be made using the TNMM, the adjustment should be restricted to the proportion of the international transaction (e. royalty