“TNMM”

Puma Sports India Private Limited, Bengaluru vs. Joint Commissioner of Income Tax, (OSD), Circle-3(1)(1), Bangalore

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

Bench: Shri George George K. & Ms. Padmavathy S.It(Tp)A No. 306/Bang/2022 (Assessment Year: 2015-16)

left upon. Accordingly we adjudicate only the above issues in the following paragraphs. 6. The assessee has chosen the Transaction Net Margin Method (TNMM) as the most appropriate method and operating profit and operating revenue is the profit level indicator. For the year under consideration the details of international transactions ... into by the assessee is as follows: - Particulars Amount Amount Method Received/Receivable Paid/Payable (Amount in INR) (Amount in INR) Cost of Samples Purchased 19927157 TNMM Finished goods purchased 2508061 1020405230 TNMM Design Charges 3594932 TNMM Management fees 90512248 TNMM Reimbursement of expenses 259976 9294728 TNMM Total

Continuserve Softech India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

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

Bench: Shri N. V. Vasudevan & Shri Chandra Poojariit(Tp)A No.242/Bang/2021 Assessment Year : 2016-17 Vs. Dcit, M/S. Continuserve Softech India Pvt. Ltd., Circle – 2(1)(1), Prathik Tech Park, 2Nd & 3Rd Floor, Bengaluru. Sy. No.93/1, Veerasandra Village, Attibele Hobli, Hosur Road, Electronic City Phase 1, Bengaluru – 560 100. Pan : Aaacc 8342 A Assessee Respondent Assessee By : Shri. Darpan Kirpalani, Advocate Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 22.09.2022 Date Of Pronouncement : 23.09.2022 O R D E R Per N V Vasudevan

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/OC, which was arrived at 6.76% by the TPO. He also selected comparable companies from database

M/S. Te Connectivity India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 2, Ltu, Bangalore

In the result, all these appeals are partly allowed

Bench: Shri N. V. Vasudevan & Shri.Chandra Poojariit(Tp)A Nos. & Appellant Respondent Assessment Year 2593/Bang/2019 M/S. Te Connectivity India Private Limited, Acit, 2015-16 Te Park, 22B, Doddenakundi Corporation, Circle – 2, 2Nd Phase, Industrial Area, Large Taxpayer Unit, Whitefield Road, Bengaluru Bengaluru – 560 048. Pan: Aabct 7374 C 372/Bang/2021 -Do- -Do- 2016-17 200/Bang/2022 -Do- Dcit, Ltu, 2017-18 Circle – 2, Bengaluru. 716/Bang/2022 -Do- Acit, 2018-19 Circle – 7(1)(1), Bengaluru. Assessee By : Shri Sriram Seshadri, Advocate Revenue By : Shri Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 21.09.2022 Date Of Pronouncement : 23.09.2022 O R D E R Per N. V. Vasudevan:

Transfer Pricing Study was in the following manner: Manufacturing Segment: • The assessee had undertaken an analysis adopting the Transactional Net Margin Method ("TNMM") as the most appropriate method with operating profit margin i.e., Operating Profit/Sales being the Profit Level Indicator ("PLI") for the Licensed Manufacturing segment and mark ... were duly considered to be at arm's length in accordance with the Indian transfer pricing regulations. EDS Segment in AY 2016-17: • TNMM was adopted as most appropriate method. PLI chosen for comparison was OP/sales. 28 companies were identified as comparables for Assessment Year 2016-17 the services segment

Iron Mountain Services Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.307/Bang/2022 Assessment Year : 2017-18 M/S. Iron Mountain Services Private Limited, Vs. The Deputy Commissioner Of Income Tax, Level 10, Citrine Building Bagmane World Circle – 3(1)(1), Technology Centre, 4, Outer Ring Road, Bengaluru. Mahadevpura, Bengaluru – 560 048. Pan : Aahcm 2578 F Appellant Respondent Appellant By : Shri. Chavali Narayanan, Ca Respondent By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 20.09.2022 Date Of Pronouncement : 20.09.2022 O R D E R Per N. V. Vasudevan: This Appeal By The Assessee Is Directed Against The Order Dated 27.02.2022 Of National Faceless Assessment Centre (Nfac), Delhi, (Hereinafter Referred To As The Assessing Officer, “Ao” In Short) Passed U/S.143(3) Read With Section 144C(13) Of The Income Tax Act, 1961 (Act) In Relation To Assessment Year 2017-18. 2. The Assessee In Engaged In The Business Of Provision Of Information Technology Enabled Services (Ites), To Its Wholly Owned Holding Company. In Terms Of The Provisions Of Sec.92-A Of The Act, The Assessee & Its Wholly

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 ... Transfer Pricing Officer (TPO) to whom the determination of ALP was referred to by the AO under section 92CA of the Act, 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 accepted some companies chosen

Etisalat Software Solutions Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

In the result, the appeal is allowed for statistical purposes

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

Software development services – Rs.2,848,331,417 (ii) Reimbursement of expenses – Rs. 153,481,812 5. The assessee has applied Transactional Net Margin Method [TNMM] as the most appropriate method and the Profit Level Indicator [PLI] is taken as the Operating Profit / Operating Cost. The assessee

M/S. Hewlett-Packard (India) Software Operation Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range- 3, Bangalore

In the result the appeal of the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S.It(Tp)A No. 2575/Bang/2019 (Assessment Year: 2015-16)

expenses 38,92,22,909 4 IT(TP)A No. 2575/Bang/2019 M/s. Hewlett-Packard (India) 6. The assessee has chosen Transactional Net Marginal Method (TNMM) to be the most appropriate method for determination of ALP. The operating profit and operating rate ratio has been taken as the profit level indictor ... TNMM analysis. The assessee computed its operating margin as below: - Nature of Transaction Amount (in Lakhs) Revenue from Operations 1,32,349.58 Other Income 1,151.35 Total Operating Revenue (A) 1,33,500.93 Employee benefits expenses 77,091.80 Other Expenses 25,202.90 Depreciation expenses 9,435.13 Bank charges 37.48 Total

M/S. Te Connectivity Services India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

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

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.191/Bang/2022 Assessment Year : 2017-18 M/S. Te Connectivity Services India Private Vs. National Faceless Assessment Centre, Limited, Delhi. 59/2, 1St Floor, Gurudas Heritage, Block-B, 100 Feet Ring Road, Banashankari 2Nd Stage, Bengaluru – 560 070. Pan: Aafct 3474 R Appellant Respondent Assessee By : Shri. Sriram Seshadri, Ca Revenue By : Dr. Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 14.09.2022 Date Of Pronouncement : 16.09.2022 O R D E R Per N. V. Vasudevan:

price it received from its AE for rendering ITeS was at ALP, the assessee filed transfer pricing analysis choosing Transactional Net Margin Method (TNMM) as the most appropriate method for determining ALP. The operating margin of the assessee as computed in the TP study and as computed by the Transfer

M/S. Harman Connected Services Corporation India Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 3(1)(2), Bengaluru

In the result, the appeal is partly allowed

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

thus, we reject argument advanced by Ld.AR. IT(TP)A No.2243/Bang/2019 Page 8 of 24 23.8. Alternatively, it has been argued that in TNMM, working capital adjustment subsumes sundry creditors. In such situation computing interest on outstanding receivables and loans and advances to associated enterprise would amount to double taxation

Motorola Mobility India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-4(1)(1), Bangalore

In the result, appeal of the assessee is allowed

Bench: Shri. N. V. Vasudevan & Ms. Padmavathy S

limited purpose of adjudicating the above ground raised by the learned AR. In the TP study, the assessee has adopted Transactional Net Margin Method (TNMM) as the most appropriate method. The operating profit / operating cost ratio has been taken as the profit level indicator in TNMM analysis. The assessee ... distribution activities is considered to be at arm's length from TP perspective. In a corroborative analysis done under Transaction Net Margin Method (TNMM) the assessee's margin is taken to be at arm's length as the median of the comparables was 1.08% whereas the operating profit

Metric Stream Infotech (India) Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle-4(1)(2), Bangalore

In the result, the appeal is partly allowed

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

whom the determination of ALP was referred by the AO in terms of Sec.92CA of the Act, adopted Transaction Net Margin Method (TNMM) as the Most Appropriate Method (MAM) for determining ALP. The profit level Indicator (PLI) chosen for the purpose of comparing Assessee’s margin with that ... No.314/Bang/2022 Page 3 of 19 Comparison of TP study done by the Assessee and the TPO: The Assessee TPO Methodology adopted TNMM TNMM Profit Level Indicator (PLI) OP/TC OP/OC Database used PROWESS & PROWESS CAPITALINE Comparables selected 14 11 4. After rejecting the Transfer Pricing Study (TP Study) of the taxpayer

Walvoil Fluid Power India Private Limited, Bengaluru vs. Joint Commissioner of Income Tax, Circle-7(1)(1), Bengaluru

In the result, the appeal by the assessee is allowed

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.339/Bang/2022 Assessment Year : 2011-12 Walvoil Fluid Power India Pvt. Ltd., Vs. The Deputy Commissioner No.19, 2Nd Cross, 2Nd Main, Of Income Tax, Kiadb Attibele Industrial Area, Circle 7(1)(2), Attibele, Anekal Taluk, Bengaluru. Bengaluru – 562 107. Pan: Aaacw 5954E Appellant Respondent Appellant By : Shri R.E. Balasubramaniyan, Ca Respondent By : Dr. Shankar Prasad, K., Addl. Cit-Dr Date Of Hearing : 07.09.2022 Date Of Pronouncement : 14.09.2022 O R D E R Per Padmavathy S.This Appeal Is Against The Final Order Of The Ao Passed U/S. 143(3) R.W.S. 144C(13) Of The Income-Tax Act, 1961 [The Act] Dated 28.01.2022 For The Assessment Year 2011-12 On The Following Grounds:- “1. That The Order Of The Ld. Ao Insofar As It Is Prejudicial To The Interests Of The Appellant Is Opposed To Law & Facts Of The Case. 2. That In The Calculation Of Alp The Ld. Ao Erred In Including Entities Such As M/S Dhp India Ltd & The Sundram Bleistahl

under consideration the assessee’s purchases from AE constituted 42% and sales to AE was 9%. The assessee has chosen Transaction Net Margin Method (TNMM) as the most appropriate method for computation of ALP. Operating Profit / Operating Cost is the Profit Level Indicator. The assessee chose 4 comparables whose average ... excluded from the list of com parables. 7. We have considered the rival submissions and perused the material on record. The assessee followed TNMM as the Most Appropriate Method [MAM] for the determination of ALP. Before going into the merits of this case, we will first look into the legal

Sri. Krishna Diamonds, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

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

Bench: Shri George George K & Shri Laxmi Prasad Sahu

analysis undertaken by the Appellant based on CUP method on unjustified reasons and performing fresh transfer pricing analysis; and iii. Not appreciating that TNMM is not the most appropriate method in the facts and circumstance of the case. .. 5. Without prejudice to the above and assuming without admitting that TNMM ... method. The TPO applied certain filters and selected fresh new comparables and PLI margin was computed at 7 to 18%. The ld.TPO applied TNMM method and proposed make adjustment u/s 92CA of Rs.1,84,66,332/-. The AO passed draft assessment order on 23/04/2021 making the same adjustment as suggested