“TNMM”

Sabre Travel Network (India) Pvt. Ltd., Mumbai vs. DCIT Circle 8(1)(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri Gagan Goyalvk-Vk-La- 7380@Eaqcbz@2018 ¼Fu-Oa- 2014&15½ Sabre Travel Network (India) Pvt. Ltd. Urmi Estate, 14Th Floor, 96, Ganpatrao Kadam Marg, Lower Parel (West) Mumbai-400 013 ..... Vihykfkhz/Appellant Pan No. Aaaca4836H Cuke Vs. Deputy Commissioner Of Income Tax Cc-8 (1) (2), Room No.625, 6Th Floor, Aayakar Bhavan, ..... Izfroknh/Respondent Mumbai-400 020

alia entered into international transactions with its Associated Enterprise (AE) with respect to provision for marketing services. The assessee applied Transactional Net Margin Method (TNMM) as most appropriate method to benchmark the transactions. The assessee selected six comparables to benchmark the transaction. The Transfer Pricing Officer (TPO) vide order dated ... adjustment of Rs.323,911,745/-. The TPO further made adjustment of Rs.2 crores in respect of marketing service fee, rejecting assessee’s entity level TNMM approach. The assessee filed objections before the Dispute Resolution Panel (DRP) assailing the adjustments made by the TPO. The DRP upheld the comparables selected

Cnh Industrial (India) Private Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Centre Circle 6(3), Mumbai

In the result appeal of the assessee is partly allowed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Cnh Industrial (Ind) Pvt. Ltd Level04, Rectangle-1, D4 Acit, Central Circle 6(3) District Center, Commercial Mumbai Vs. Complex Saket, South Delhi, Delhi 110017 (Appellant) (Respondent) Pan No. Aaci3922Q

components of ₹ 1077.90 crores made by the assessee to its associated enterprises. Assessee benchmarked this international transaction by adopting Transactional Net margin method [ TNMM], adopting profit level indicator of operating profit/operating cost, taking assessee itself as tested party, selecting 8 comparable companies whose weighted average margin for 3 years

Jardine Lloyd Thomposn India P.Ltd, Mumbai vs. ACIT15(2)(1), Mumbai

The appeal is partly allowed

Bench: Amit Shukla () & Ms. Padmavathy S. ()

entered into the following international transactions:- Sr. Transaction Amount Method No. 1 Provision o administrative support and back 1,13,12,38,862 TNMM office services 2 Receipt of Cost Allocation 3,62,36,546 TNMM 3 Payment of interest on external commercial 44,44,050 Other Method ... Other Method 5. The assessee has benchmarked the transaction of provision of administrative support and back office services under Transaction Net Margin Method (TNMM). The operating profit to total cost is taken as the profit level indicator (PLI). The PLI of the assessee as per the Transfer Pricing Study

Towers Watson India P.Ltd, Mumbai vs. DCIT Cir 8(3), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri Aby T Varkey & Shri Amarjit Singhwillis Towers Watson Vs. The Dcit Central India Private Limited Circle – 8(3), Room No. 204, (F Orm Erly K Nown As T Ower S Wat S On I Nd Ia Pv T.L Td. ) Aaykar Bhavan 2 Floor, Tower B, Unitech Mumbai – 400 093 Business Park, South City-1, Sector 4, Gurgaon -122001 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacg2955K Appellant .. Respondent Appellant By : Nikhil Tiwari Respondent By : Manoj Kumar Date Of Hearing 02.05.2023 Date Of Pronouncement 12.05.2023 आदेश / O R D E R Per Amarjit Singh (Am): The Present Appeal Filed By The Assesse Is Directed Against The Order Passed By The Ld. Cit(A)-58, Mumbai Dated 25.03.2015 For A.Y. 2009-10. The Assesse Has Raised The Following Grounds Before Us: “General Ground 1. Erred In Upholding The Action Of The Deputy Commissioner Of Income-Tax 8(3), Mumbai ('Learned Ao) In Determining The Total Taxable Income Of The Appellant For The Subject Ay At Rs.7,04,44,370 Instead Of The Amount Of Rs.1,14,98,477 As Reported Under Section 115Jb Of The Act, In The Return Of Income Filed By The Appellant. 2. Erred In Accepting The Contentions Of The Learned Ao Of Making A Reference Of The Appellant'S Case To The Deputy Commissioner Of Income-Tax Ii(8), Mumbai (Learned Tpo) Under Section 92Ca(1) Of The Act, Without Satisfying The Conditions Specified Therein

method, without giving cogent reasons, for benchmarking the international transactions with AEs of provision of consultancy services, Application of the Transactional Net Margin Method (TNMM') as the most appropriate method 6. erred in upholding the learned TPO's action of applying TNMM as the most appropriate method for benchmarking

Fusion Jewellery Mfg. Co. P.Ltd, Mumbai vs. Pr CIT 9, Mumbai

Lucent Jewels Inc., USA and N.D. Gems Inc., USA) of INR 13.73 Crores. The TPO accepted Transaction Net Margin Method (TNMM) followed by the Appellant for benchmarking the export to its AEs as the most appropriate method with Operating Profit(OP)/Operating Cost(OC) as Profit Level Indicator (PLI). However

ACIT Cir 2(3)(1), Mumbai vs. Canvas M Technologies Ltd, Mumbai

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm Canvas M Technologies Ltd. Acit Cir 2(3)(1) (Now Known As M/S. Tech Room No. 552, 5Th Floor, Aayakar Mahindra Ltd.) Bhavan, M.K. Road, Vs. Gateway Building, Apollo Mumbai-400 020 Bunder, Mumbai – 400 001 (Appellant) (Respondent) Pan No. Aaccc8665N Assessee By : Mr. Viral Shah, Ar Revenue By : Ms. Samruddhi Hande, Dr Date Of Hearing: 15.02.2023 Date Of Pronouncement : 10.05.2023

under Rule 10D of the Income Tax Rules, 1962, assessee selected itself as the tested party, most appropriate method of Transactional Net Margin Method [ TNMM] adopting the Profit Level Indicator (PLI) of net cost plus markup. The margin of the assessee was 24.19% selecting several comparables whose arithmetic mean ... total turnover and therefore, both are comparable. He further held that assessee has incurred losses and has considerable bad debts therefore; internal TNMM comparability is not suitable. Further, in the end he held that the transfer pricing study report shows that assessee has earned profit of 22% on transaction with

Dy Commissioner of Income Tax -6(1)(2), Mumbai-400020 vs. M/S. Bristol Myers Squibb India P Ltd., Mumbai-400018

In the result, appeal of the Revenue is partly allowed and the assessee’s cross objections are dismissed

Bench: Amit Shukla () & Ms. Padmavathy S. ()

erred by not appreciating the fact that TPO has widely discussed and clarified the reasons for rejection of RPM as MAM and application of TNMM as MAM in the case of the assessee for the International Transaction of purchase of formulations.?" 2. "Whether on the facts and circumstances ... year after other. The prime purpose of the said expenses is to create and strengthen the brand of the AEs in India and rendering TNMM as the MAM instead of RPM in the case of the assessee for the International Transaction of Purchase of formulations.” I.T.A. No.1175 /Mum/2022 (Revenue appeal

Micro Focus Software Inc. (Earlier Known As Novell Inc.), Mumbai vs. The Dy CIT (Intl. Taxation)-Circle-3(2)(2), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

regarded as constituting a service PE under Article 5(2)(1). On the second question the AAR ruled that the transactional net margin method (TNMM) was the most appropriate method for the determination of the Arm's Length Price (ALP) in respect of the service agreement dated

Micro Focus Software Inc. (Earlier Known As Novell Inc.), Mumbai vs. The Dy CIT (Intl. Taxation)-Circle-3(2)(2), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

regarded as constituting a service PE under Article 5(2)(1). On the second question the AAR ruled that the transactional net margin method (TNMM) was the most appropriate method for the determination of the Arm's Length Price (ALP) in respect of the service agreement dated

Kongsberg Maritime Cm India Pvt. Ltd., Navi Mumbai vs. Addll/Jt/Dy/ACIT/ITO-NFAC, Delhi

Bench: Shri Prashant Maharishi & Shri Kuldip Singhassessment Year: 2017-18

into international transactions with its AEs as under: Nature of Transaction Amount in Rupees Method adopted for bench marking Provision of 55,214,065 TNMM using OP/OC marketing support as PLI 5 M/s. Kongsberg Maritime CM India Pvt. Ltd. services Provision of 223,616,051 TNMM using OP/OC application engineering ... services Secondment of 5,969,709 TNMM using OP/OC employees as PLI Provision of after sale 23,215,206 TNMM using OP/OC support services as PLI Purchase of spares and 53,167,256 TNMM using OP/OC tools as PLI Provision of clearing 12,871,418 TNMM using OP/OC and forwarding

Ingredion India Private Limited, Navi Mumbai vs. ACIT, Circle-15(1)(2), Mumbai

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

aggregation of transactions for the purpose of benchmarking the international transaction of payment of regional service fees; f. rejecting Transactional Net Margin Method ('TNMM') as the Most Appropriate Method ("MAM') for the determination of the ALP; and g. not appropriately applying any of the prescribed methods as per Section

Lord India P.Ltd, Mumbai vs. Asst CIT 10(2)(1), Mumbai

In the result we allow the additional ground raised by the assessee and quash the assessment order

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhaillord India Private Vs. Assistant Commissioner Limited (F Ormer Ly Know N A S L Ord Of Income-Tax, Circle- India C Hem Ica L Pr Od Uct S Pv T. Lt D. ) 10(2)(1), Room No. 509, A/401-404, 215 – Atrium Aayakar Bhavan, Chakala, Andheri – Kurla M.K. Road, Road Andheri (East) Mumbai - 400020 Mumbai - 400093 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacu0785H Appellant .. Respondent Appellant By : M.P. Lohia Respondent By : Dr. Samual Pitta Date Of Hearing 29.03.2023 Date Of Pronouncement 24.04.2023 आदेश / O R D E R Per Amarjit Singh (Am): The Present Appeal Filed By The Assesse Is Directed Against The Order Passed By The Drp-1, Mumbai Dated 26.02.2015 For A.Y. 2011- 12. The Assesse Has Raised The Following Grounds Before Us: “1. Transfer Pricing - Availing Of Intra-Group Services 1.1 On The Facts & Circumstances Of The Case & In Law, The Learned Acit/ Drp Erred In Determining The Arm'S Length Price In Relation To The International Transaction Relating To The Availing Of Group Benefit Services/ Technical Service Management Services (Hereinafter Referred To As "Intra-Group Services") Of Rs.1,14,87,092 To Be Rs. 22,97,418/-, Thus Making An Adjustment Of Rs.91,89,674/- & Thereby Disregarding The Fact That The Appellant Had Received The Services For The Purposes Of Its Business. In Doing So, The Learned Acit/ Drp Grossly Erred By Not Appreciating The Commercial Wisdom/ Expediency Of The Appellant

business model of the Appellant and in rejecting the Appellant's economic analysis of benchmarking closely interlinked transactions using Transactional Net Margin Method ("TNMM") 1.3 On the facts and circumstances of the case and in law, the learned ACIT/ DRP erred in not appreciating the fact that the Appellant ... recovery of expenditure of Rs 2, 63,52,035/– 010. In its transfer pricing study report assessee used Internal Transactional Net Margin Method (TNMM) as the most appropriate method. Assessee selected return on total cost i.e. OP/OC as the profit level indicator, it computed its PLI on transactions with associated

Technimont Spa India Project Office, Mumbai vs. DCIT (It) 4(1)(2), Mumbai

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

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.2152/Mum/2017 (निर्धारण वर्ा / Assessment Years: 2012-13) M/S. Tecnimont Spa India बिधम/ Deputy Commissioner Of Office Income Tax- 4(1)(2) Vs. Tecnimont Icb House, Room No. 1712 17Th Chincholi Bunder, 504 Link Floor, Air India Building Road, Malad (W), Mumbai- Nariman Point, Mumbai- 400064. 400021 स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaact8224A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri. M.P. Lohia A/W Pranay Gandhi Revenue By: Shri Manoj Kumar Cit Dr सुनवाई की तारीख / Date Of Hearing: 15/02/2023 घोषणा की तारीख /Date Of Pronouncement: 21/04/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ao Dated Nil Passed U/S 143(3) Read With Section 144C(1) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. At The Outset, The Ld. Ar Of The Assessee Brought To Our Notice That The Only Issue Is Regarding The Transfer Pricing Adjustment Made By The Ao Pursuant To The Dispute Resolution Panel (Drp) Direction Dated 23.12.2016. According To The Ld. Ar, The Assessee/Tipo Is A Project Office/Pe Of M/S. Tecnimont Spa (Tcm), A Foreign Company Incorporated At Milan, Italy Which Is Engaged In Engineering & Construction World-Wide In Section Of Chemical, Petro-Chemical Oil & Gas, Energy Etc; According To The Ld. Ar, The Assessee/Tipo Has Been Awarded Inter-Alia Turnkey Project By M/S. Indian Oil Corporation (Hereinafter “M/S. Iocl”) At Panipat Project. & The Assessee/Tipo

signed nor auditors name not discernable, he took note of the earlier years [two (2) years] wherein the Most Appropriate method (MAM) adopted was TNMM instead of CPM [as suggested in this year T.P. Study], and he adopted TNMM as MAM; and consequently, [PLI is operating profit by operating income ... pertain to the sole business of execution of the 3 A.Y. 2012-13 Technimont SPA India project. As noted (supra) according to the TPO, TNMM was the most suitable method for conducting benchmarking analysis of the transactions of the assessee at an entity level, as all the business activities