← All Phrases

“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

Refinitiv Ltd., Mumbai vs. DCIT (I.T) 2(1), Mumbai

In the result, both the appeals filed by the Assessing Officer are dismissed, and both the appeals filed by the assessee are allowed in the limited terms indicated above

ITA 4997/MUM/2004[1999-2000]Status: DisposedITAT Mumbai05 Jul 2022AY 1999-2000
Section 143(3)

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

Refinitiv Ltd., Mumbai vs. DCIT (I.T) RG. 2, Mumbai

In the result, both the appeals filed by the Assessing Officer are dismissed, and both the appeals filed by the assessee are allowed in the limited terms indicated above

ITA 4996/MUM/2004[1998-1999]Status: DisposedITAT Mumbai05 Jul 2022AY 1998-1999
Section 143(3)

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

Altico Capital India Private Limited ( Formerly Clearwater Capital Partners (I) Private Limited, Mumbai vs. ACIT Circle-14(1)(2), Mumbai

In the result, cross appeals by the assessee and Revenue are partly allowed

ITA 424/MUM/2018[2011-12]Status: DisposedITAT Mumbai04 Jul 2022AY 2011-12

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur Agrawal a/wFor Respondent: Shri Rajesh Kumar Yadav, Sr. AR
Section 250

assessee entered into following international transactions with its associated enterprises: Sr. Amount Transaction Method No. (Rs.) 1. Provision of Investment 64,947,189 TNMM Advisory Services 2. Payment of interest on fully 156,982,378 CUP convertible debentures (FCD) 3. Recovery of expenses 1,980,267 NA 7. In respect ... modelling, preparation of draft term sheet, etc., to its associated enterprise CCP, Singapore. For benchmarking this transaction, the assessee used Transactional Net Margin Method (“TNMM”) as the most appropriate method with Profit Level Indicator (“PLI”) of Operating Profit to Operating Cost (“OP/OC”). By considering itself as the tested party, assessee

Jt.Commissioner of Income Tax (OSD)- 14(1)(1), Mumbai vs. Clearwater Capital Partners India Private Limited (Now Known As Altico Capital India Private Limited, Mumbai

In the result, cross appeals by the assessee and Revenue are partly allowed

ITA 11/MUM/2018[2011-12]Status: DisposedITAT Mumbai04 Jul 2022AY 2011-12

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur Agrawal a/wFor Respondent: Shri Rajesh Kumar Yadav, Sr. AR
Section 250

assessee entered into following international transactions with its associated enterprises: Sr. Amount Transaction Method No. (Rs.) 1. Provision of Investment 64,947,189 TNMM Advisory Services 2. Payment of interest on fully 156,982,378 CUP convertible debentures (FCD) 3. Recovery of expenses 1,980,267 NA 7. In respect ... modelling, preparation of draft term sheet, etc., to its associated enterprise CCP, Singapore. For benchmarking this transaction, the assessee used Transactional Net Margin Method (“TNMM”) as the most appropriate method with Profit Level Indicator (“PLI”) of Operating Profit to Operating Cost (“OP/OC”). By considering itself as the tested party, assessee

Sandisk India Device Design Centre Private Limited, Bengaluru vs. Joint Commissioner of Income Tax, Special Range-6, Bangalore

In the result, the appeal filed by the assessee stands partly allowed as indicated hereinabove

ITA 288/BANG/2021[2016-17]Status: DisposedITAT Bangalore30 Jun 2022AY 2016-17

Bench: Smt. Beena Pillai & Shri. Laxmi Prasad Sahuit(Tp)A No. 288/Bang/2021 Assessment Year : 2016-17 M/S. Sandisk India Device Design Centre Pvt. Ltd., Survey No. 143/1, Amani Bellandur Khane Village, The Joint Prestige Excelsior, Commissioner Of Prestige Tech Park, Income-Tax Marathalli – Sarjapur Outer (Osd), Ring Road, Circle 6 (1)(1), Vs. Kadubeesanahalli, Bangalore. Varthur Hobli, Bangalore – 560 103. Pan: Aaics9204M Appellant Respondent Assessee By : Shri Ajay Roti, Ca : Dr. Manjunath Karkihalli, Revenue By Cit Dr Date Of Hearing : 25-05-2022 Date Of Pronouncement : 30-06-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Final Assessment Order Passed By National E-Assessment Centre, New Delhi On 30.04.2021 For A.Y. 2016-17 On Following Grounds Of Appeal: “The Grounds Stated Hereunder Are Independent Of & Without Prejudice To One Another. The Appellant Submits As Under:

For Appellant: Shri Ajay Roti, CA
Section 92C(3)Section 92D

length price of the international transactions in SWD/ITeS/MSS segments provided to the associated enterprises (AE) has been determined by applying Transactional Net Margin Method (TNMM), stating to be the most appropriate method in the facts and circumstances of the case. The operating profit to operating cost ratio has been taken ... profit level indicator (PLI) in TNMM analysis. 2.5 The Ld.TPO on verifying the details agreed with the arms length margin, computed in respect of ITES segment which was at 18%. However, he disputed the transfer pricing study by assessee in respect of software development segment and marketing support segment

M/S Harman International (India) Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(2), Bangalore

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

ITA 49/BANG/2019[2014-15]Status: DisposedITAT Bangalore30 Jun 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.49/Bang/2019 Assessment Year : 2014-15 M/S. Harman Connected Services Vs. Deputy Commissioner Of Corporation India Private Limited, Income Tax, 4A, Jupiter, Prestige Technology Park, Circle - 3(1)(2), Sarjapur, Marathahalli Road, Bengaluru. Kadubeesanahalli Village, Bengaluru – 560 103. Pan: Aacch 1585 J Appellant Respondent Assessee By : Shri. T. Suryanarayana, Senior Advocate Revenue By : Dr. Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 27.06.2022 Date Of Pronouncement : 30.06.2022 O R D E R Per N V Vasudevan

For Appellant: Shri. T. Suryanarayana, Senior AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 92Section 92C

Cost) Rs.16,80,84,457/- Operating/Net cost plus mark-up (‘OP/OC’) 19.64% 10. Both the assessee and the TPO chose Transaction Net Margin Method (TNMM) as the Most Appropriate Method (MAM) for determining ALP. The profit level indicator chosen for the purpose of comparing assessee’s margin with that ... regard for the MAM to determine ALP. While the assessee chose Resale Price Method (RPM) as MAM in its TP study, the TPO chose TNMM as MAM. IT(TP)A No. 49/Bang/2019 Page 15 of 31 Gross profit earned by the assessee in the Trading Segment (as reflected

Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore vs. M/S Altisource Business Solutions India Pvt Ltd, Bangalore

In the result, the appeal filed by assessee stands allowed as indicated hereinabove and appeal filed by revenue stands dismissed

ITA 164/BANG/2018[2012-13]Status: DisposedITAT Bangalore29 Jun 2022AY 2012-13

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 162/Bang/2018 Assessment Year : 2012-13 M/S. Altisource Business Solutions Pvt. Ltd., Pritech Park, 3Rd & 5Th Floors Of Wing A & The Deputy 4Th Floor Of Wing B, Commissioner Of Block No. 12, Pritech Park, Income Tax, Survey No. 51-64/4, Circle – 1 (1)(2), Bellandur Village, Bangalore. Vs. Sarjapur Marathahalli Outer Ring Road, Bangalore – 560 103. Pan: Aaaco9467A Appellant Respondent & It(Tp)A No. 164/Bang/2018 Assessment Year : 2012-13 (By Revenue) : Shri K.R. Vasudevan, Assessee By Advocate : Smt. Susan Dolores George Revenue By Cit (Osd) Date Of Hearing : 30-05-2022 Date Of Pronouncement : 29-06-2022 Order Per Beena Pillaipresent Cross Appeals Filed By The Assessee & The Revenue Against Order Dated 31.08.2017 Passed By The Ld.Cit(A)-1, Bangalore For A.Y. 2012-13 On Following Grounds Of Appeal:

Section 92C(3)(a)

erred in disregarding the position of law that there could e difference between the enterprises compared under the TNMM method that are not likely to materially affect the price or cost charged or the profits accruing to such enterprises. 6. The Ld. CIT(A) erred in fact ... seeking exact comparability while searching for comparable companies of the assessee company under TNMM whereas the requirement of law and international jurisprudence require seeking similar comparable companies. 7. The Ld. CIT (A) erred in deleting the addition made on account of belated remittance of PF/ESI by the assessee

Technicolor India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, the appeal of the assessee in ITA

ITA 217/BANG/2017[2011-12]Status: DisposedITAT Bangalore29 Jun 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Sharath Rao, A.RFor Respondent: Shri Vilas V Shinde, D.R
Section 10A

considering the margin earned by the Appellant from Non-Associated Enterprises (“Non-AE”) transaction as an internal comparable under Transactions Net Margin Method (“TNMM”) for its transaction with AE’s.” 2. The assessee filed petition for admission of additional grounds and placed reliance on the judgement in the case ... considering the margin earned by the Appellant from Non-Associated Enterprises (“Non-AE”) transaction as an internal comparable under Transactions Net Margin Method (“TNMM”) for its transaction with AE’s.” 7.1 After hearing both the parties, in the case of e4e Business Solutions India

M/S Tokai Rika Minda India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Cicle-7(1)(1), Bangalore

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

ITA 1513/BANG/2017[2013-14]Status: DisposedITAT Bangalore29 Jun 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri K.R. Vasudevan, A.RFor Respondent: Dr. Manjunath Karkihalli, D.R
Section 143(3)Section 92CSection 92C(2)

imported. 26. The DRP has upheld the non-grant of customs duty adjustment on the basis that the arithmetic mean of margins under the TNMM method takes care of such difference. IT(TP)A No.1513/Bang/2017 M/s. Tokai Rika Minda India Pvt. Ltd., Nelamangala Taluk Page ... relied on the order of the TPO and submitted that arithmetic mean of the margins of the comparables under TNMM takes care of such differences and she further submitted that the adjustments were rejected on the following reasons:- IT(TP)A No.1513/Bang/2017 M/s. Tokai Rika Minda India Pvt. Ltd., Nelamangala

Technicolor India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal of the assessee in ITA

ITA 300/BANG/2016[2011-12]Status: DisposedITAT Bangalore29 Jun 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Sharath Rao, A.RFor Respondent: Shri Vilas V Shinde, D.R
Section 10A

considering the margin earned by the Appellant from Non-Associated Enterprises (“Non-AE”) transaction as an internal comparable under Transactions Net Margin Method (“TNMM”) for its transaction with AE’s.” 2. The assessee filed petition for admission of additional grounds and placed reliance on the judgement in the case ... considering the margin earned by the Appellant from Non-Associated Enterprises (“Non-AE”) transaction as an internal comparable under Transactions Net Margin Method (“TNMM”) for its transaction with AE’s.” 7.1 After hearing both the parties, in the case of e4e Business Solutions India

Liebherr India P.Ltd, Navi Mumbai vs. Asst CIT 15(2)(1), Mumbai

In the result, appeal filed by the Appellant is partly allowed

ITA 2169/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Jun 2022AY 2012-13
For Appellant: Shri Ketan VedFor Respondent: Shri Michael Jerald
Section 143(3)Section 144C(13)Section 144C(5)

Resale Price Method (RPM), respectively. However, for the Assessment Year 2012-13, the Appellant had adopted aggregation approach and determined ALP by using TNMM using entity level margins. Accordingly, a show cause notices, vide order sheet entry dated 30.11.2015, 04.01.2015 and 08.01.2015, were given to the Appellant to explain ... activities undertaken by the Appellant were closely interlinked and were dependent upon the outcome of each other. The Appellant had, therefore, selected TNMM as most appropriate method to benchmark the international transactions. The TPO, however, rejected entity level benchmarking using TNMM by adopting aggregation of transaction approach followed

Clsa India Ltd, Mumbai vs. DCIT Cir 4(1), Mumbai

The appeal of the assessee is allowed

ITA 2385/MUM/2014[2008-09]Status: DisposedITAT Mumbai28 Jun 2022AY 2008-09

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm The Dy. Commissioner Of Clsa India Ltd. Income Tax, Circle 4(1), 8/F Dalamal House, Room No.640, Aayakar Nariman Point, Vs. Bhavan, M.K. Road, Mumbai–400 021 Mumbai–400020 (Appellant) (Respondent) Pan No. Aaacc2262K Assessee By : S/Shri Mukesh Butani, Ms. Karishma R. Phatarphekar, Mr. Harsh R Shah, Shreyash Shah Revenue By : Shri Dr. Yogesh Kamat, Cit Dr Date Of Hearing: 29.03.2022 Date Of Pronouncement : 28.06.2022

For Appellant: S/Shri Mukesh ButaniFor Respondent: Shri Dr. Yogesh Kamat, CIT DR

case and in law, the learned AO / TPO/CIT(A) failed to discharge the burden of proof to establish that Transactional Net Margin Method (TNMM) is not the Most Appropriate Method ('MAM') for the determination of the arm's length price (ALP) in respect of the transaction pertaining to provision ... services to associated enterprises ("AES'). 3. On the facts and circumstances of the case and in law, the learned AO/TPO/CIT(A) erred in rejecting TNMM as the MAM for the determination of the ALP of the international transaction of brokerage commission received by the Appellant from

Binod Kumar Singh, Mumbai vs. DCIT CC 18 & 19, Mumbai

In the result, appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 1479/MUM/2014[2008-09]Status: DisposedITAT Mumbai27 Jun 2022AY 2008-09

Bench: Shri Vikas Awasthy & Shri M.Balaganeshआअसं.7721/मुं/2012(िन.व. 2008-09) आअसं.1429/मुं/2014(िन.व. 2009-10) Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 Pan: Aabcs1728D ...... अपीलाथ"/Appellant बनाम Vs. The Acit, Central Circle-20, Room No. 402, Aayakarbhavan, M.K. Road, Mumbai-400020. ..... "ितवादी/Respondent आअसं.1178/मुं/2014(िन.व. 2009-10) The Acit, Central Circle-20, Room No. 402, ...... अपीलाथ"/Appellant Aayakarbhavan, M.K. Road, Mumbai-400020 बनाम Vs. Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 ..... "ितवादी/Respondent Pan: Aabcs1728D

For Appellant: Sh. Percy Pardiwala,Sr.Advocate with Sh. HitenChandeFor Respondent: S/Sh. Vijay Kumar-CIT-DR and Tejinder Pal Singh
Section 143(3)Section 144CSection 37(1)

pages 303 to 308 of the Paper Book. The assessee has benchmarked the transaction of sale of content by applying Transaction Net Margin Method (TNMM) as the most appropriate method and using OP/OR as Profit Level Indicator (PLI). The above transaction should be accepted at Arm’s Length since ... even if credit period is considered to be a separate international transaction, it must be combined with the transaction of sale and benchmarked applying TNMM as the price for the credit period provided to its AE has been considered in the sale price. 11.4 The ld. Counsel contended that

Multi Screen Media P.Ltd, Mumbai vs. Asst CIT Cen Cir 20, Mumbai

In the result, appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 1429/MUM/2014[2009-10]Status: DisposedITAT Mumbai27 Jun 2022AY 2009-10

Bench: Shri Vikas Awasthy & Shri M.Balaganeshआअसं.7721/मुं/2012(िन.व. 2008-09) आअसं.1429/मुं/2014(िन.व. 2009-10) Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 Pan: Aabcs1728D ...... अपीलाथ"/Appellant बनाम Vs. The Acit, Central Circle-20, Room No. 402, Aayakarbhavan, M.K. Road, Mumbai-400020. ..... "ितवादी/Respondent आअसं.1178/मुं/2014(िन.व. 2009-10) The Acit, Central Circle-20, Room No. 402, ...... अपीलाथ"/Appellant Aayakarbhavan, M.K. Road, Mumbai-400020 बनाम Vs. Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 ..... "ितवादी/Respondent Pan: Aabcs1728D

For Appellant: Sh. Percy Pardiwala,Sr.Advocate with Sh. HitenChandeFor Respondent: S/Sh. Vijay Kumar-CIT-DR and Tejinder Pal Singh
Section 143(3)Section 144CSection 37(1)

pages 303 to 308 of the Paper Book. The assessee has benchmarked the transaction of sale of content by applying Transaction Net Margin Method (TNMM) as the most appropriate method and using OP/OR as Profit Level Indicator (PLI). The above transaction should be accepted at Arm’s Length since ... even if credit period is considered to be a separate international transaction, it must be combined with the transaction of sale and benchmarked applying TNMM as the price for the credit period provided to its AE has been considered in the sale price. 11.4 The ld. Counsel contended that

Asst CIT Cen Cir 20, Mumbai vs. Multi Screen Media P.Ltd, Mumbai

In the result, appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 1178/MUM/2014[2009-10]Status: DisposedITAT Mumbai27 Jun 2022AY 2009-10

Bench: Shri Vikas Awasthy & Shri M.Balaganeshआअसं.7721/मुं/2012(िन.व. 2008-09) आअसं.1429/मुं/2014(िन.व. 2009-10) Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 Pan: Aabcs1728D ...... अपीलाथ"/Appellant बनाम Vs. The Acit, Central Circle-20, Room No. 402, Aayakarbhavan, M.K. Road, Mumbai-400020. ..... "ितवादी/Respondent आअसं.1178/मुं/2014(िन.व. 2009-10) The Acit, Central Circle-20, Room No. 402, ...... अपीलाथ"/Appellant Aayakarbhavan, M.K. Road, Mumbai-400020 बनाम Vs. Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 ..... "ितवादी/Respondent Pan: Aabcs1728D

For Appellant: Sh. Percy Pardiwala,Sr.Advocate with Sh. HitenChandeFor Respondent: S/Sh. Vijay Kumar-CIT-DR and Tejinder Pal Singh
Section 143(3)Section 144CSection 37(1)

pages 303 to 308 of the Paper Book. The assessee has benchmarked the transaction of sale of content by applying Transaction Net Margin Method (TNMM) as the most appropriate method and using OP/OR as Profit Level Indicator (PLI). The above transaction should be accepted at Arm’s Length since ... even if credit period is considered to be a separate international transaction, it must be combined with the transaction of sale and benchmarked applying TNMM as the price for the credit period provided to its AE has been considered in the sale price. 11.4 The ld. Counsel contended that

Multi Screen Media P. Ltd ( Formerly Knon As Set India P.Ltd), Mumbai vs. Asst Cen Cir 20, Mumbai

In the result, appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 7721/MUM/2012[2008-09]Status: DisposedITAT Mumbai27 Jun 2022AY 2008-09

Bench: Shri Vikas Awasthy & Shri M.Balaganeshआअसं.7721/मुं/2012(िन.व. 2008-09) आअसं.1429/मुं/2014(िन.व. 2009-10) Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 Pan: Aabcs1728D ...... अपीलाथ"/Appellant बनाम Vs. The Acit, Central Circle-20, Room No. 402, Aayakarbhavan, M.K. Road, Mumbai-400020. ..... "ितवादी/Respondent आअसं.1178/मुं/2014(िन.व. 2009-10) The Acit, Central Circle-20, Room No. 402, ...... अपीलाथ"/Appellant Aayakarbhavan, M.K. Road, Mumbai-400020 बनाम Vs. Sony Pictures Networks India Pvt. Ltd., (Formerly Known As Multi Screen Media Pvt. Ltd.), Interface Building 7, 4Th Floor, Malad Link Road, Malad (West), Mumbai-400064 ..... "ितवादी/Respondent Pan: Aabcs1728D

For Appellant: Sh. Percy Pardiwala,Sr.Advocate with Sh. HitenChandeFor Respondent: S/Sh. Vijay Kumar-CIT-DR and Tejinder Pal Singh
Section 143(3)Section 144CSection 37(1)

pages 303 to 308 of the Paper Book. The assessee has benchmarked the transaction of sale of content by applying Transaction Net Margin Method (TNMM) as the most appropriate method and using OP/OR as Profit Level Indicator (PLI). The above transaction should be accepted at Arm’s Length since ... even if credit period is considered to be a separate international transaction, it must be combined with the transaction of sale and benchmarked applying TNMM as the price for the credit period provided to its AE has been considered in the sale price. 11.4 The ld. Counsel contended that

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

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

ITA 252/BANG/2021[2016-17]Status: DisposedITAT Bangalore27 Jun 2022AY 2016-17

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.252/Bang/2021 Assessment Year : 2016-17 M/S. Mindteck India Ltd., Vs. Dcit, A.M.R. Tech Park, Block 1, 3Rd Floor, Circle – 4(1)(1), No.664, 23/24, Hosur Main Road, Begur, Bengaluru. Bengaluru-560 068. Pan : Aaach 1072 Q Appellant Respondent Assessee By : Shri. Padam Chand Khincha, Ca Revenue By : Shri. V. S. Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 20.06.2022 Date Of Pronouncement : 27.06.2022 O R D E R Per N V Vasudevan

For Appellant: Shri. Padam Chand Khincha, CAFor Respondent: Shri. V. S. Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C(13)Section 92Section 92(1)Section 92B(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 ... 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. He also selected comparable companies from database. The TPO accepted some companies chosen by the assessee

M/S. Walvoil Fluid Power (India) Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 7(1)(2), Bengaluru

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

ITA 1839/BANG/2019[2007-08]Status: DisposedITAT Bangalore27 Jun 2022AY 2007-08

Bench: Smt. Beena Pillai & Ms. Padmavathy S

For Appellant: Shri R.E. Balasubramaniyan, CAFor Respondent: Smt. Susan Dolores George, CIT(OSD)(DR)
Section 143(3)Section 154Section 92C

crores out of Rs.52 crores. Even otherwise apart from valves, other products (vacuum products) are also very similar. According to the DRP, under the TNMM method, there is no requirement of product identity for comparability and broad product range comparability would be sufficient. Hence the arguments put forth ... that in the assessee’s own case for AY 2013-14, the ITAT has held that as opposed to other transfer pricing methods, the TNMM requires transactions to be "broadly similar" to qualify as comparable. "Broadly similar" in this context means that the compared transactions don't have

M/S. Outsourcepartners International Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 5(1)(2), Bangalore

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

ITA 35/BANG/2020[2015-16]Status: DisposedITAT Bangalore24 Jun 2022AY 2015-16

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

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Shri V.S. Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 92(1)Section 92B(1)

having regard to the arm’s length price. IT(TP)A No.35/Bang/2020 Page 3 of 16 6. The assessee adopted Transactional Net Margin Method (TNMM) as the Most Appropriate Method [MAM]. The Operating Profit to Operating Cost ratio has been taken as the Profit Level Indicator [PLI] in TNMM analysis ... considered opinion, these are factually distinguishable and thus, we reject argument advanced by Ld.AR. 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

M/S Altisource Business Solutions Private Limited, Bangalore vs. Income Tax Officer Ward-1(1)(1), Bangalore

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

ITA 3368/BANG/2018[2014-15]Status: DisposedITAT Bangalore24 Jun 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.3368/Bang/2018 Assessment Year : 2014-15 M/S. Altisource Business Solutions Pvt. Ltd., Vs. Ito, Pritech Park, Block Nok.12, 3Rd Floor, 5Th Ward – 1(1)(1), Floor, B-Wing & 4Th Floor, B-Wing, Bengaluru. Bellandur Village, Bengaluru-560 103. Pan : Aaaco 9467 A Appellant Respondent Assessee By : Smt. Rashmi R, Advocate Revenue By : Shri. V. S. Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 21.06.2022 Date Of Pronouncement : 24.06.2022 O R D E R Per N V Vasudevan

For Appellant: Smt. Rashmi R, AdvocateFor Respondent: Shri. V. S. Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C(13)Section 92Section 92B

Most Appropriate Method ("MAM") for determining the arm's length interest rate chargeable on receivables having accepted the Transactional Net Margin Method ("TNMM") as the most appropriate method for the primary transaction. 3. In so far as ground Nos.14 and 16 raised by the assessee is concerned, the same ... assessee in support of its claim that the price received from AE for rendering SWD services is at ALP, filed a TP analysis adopting TNMM as the most appropriate method for determining ALP. The PLI chosen for the purpose of comparing of the assessee’s margin with that