“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

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

In the result, the appeal is allowed in the terms indicated above

ITA 863/MUM/2021[2017-18]Status: DisposedITAT Mumbai30 May 2022AY 2017-18

Section 139(1)Section 143(3)Section 234A

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

M/S. Maxim Integrated Products India Sales Private Limited, Bengaluru vs. Deputy Commissioner of Income-Tax, Circle-4(1)(1), Bengaluru

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

ITA 208/BANG/2022[2017-18]Status: DisposedITAT Bangalore30 May 2022AY 2017-18

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

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru

Section 92C

revenue 44516132 Total Expenses 33283842 Total Operating Expenses 33283842 Operating income 11232290 OP/OC 33.75% OP/OR 25.23% 6. The assessee follows Transactional Net Margin Method [TNMM] as the Most Appropriate Method [MAM]. The TPO accepted the arm’s length price [ALP] of the assessee and did not make any adjustments. However ... 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. Trianz Holdings Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, ground 34 is allowed

ITA 233/BANG/2021[2016-17]Status: DisposedITAT Bangalore30 May 2022AY 2016-17

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.233/Bang/2021 Assessment Year : 2016-17 M/S. Trianz Holdings Pvt. Ltd., Acit, Vs. No.165/2, 6Th Floor, Kalyani Magnum, Circle – 7(1)(1), Doraisani Palya, Iim Post, Bengaluru. Bannerghatta Road, Bengaluru-560 076. Pan : Aafca 8051 P Appellant Respondent

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 14ASection 92BSection 92C

transaction of rendering of services that are being determined to be at arm’s length by application of Transactional Net Margin Method (“TNMM”) and thereby separate adjustment for outstanding receivables is not warranted. 10. The Learned TPO/ Learned AO/ Hon’ble DRP has erred in imputing interest without carrying

Dy.Commissioner of Income Tax Circle-2(1)(1), Bangalore vs. M/S Axa Group Solutions Private Limited, Bangalore

In the result, the appeals of the revenue are dismissed

ITA 3279/BANG/2018[2011-12]Status: DisposedITAT Bangalore30 May 2022AY 2011-12

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

For Appellant: Shri Sankar Ganesh, Jt.CIT(DR)(ITAT), BengaluruFor Respondent: Smt. Tanmayee Rajkumar, Advocate

Section 10ASection 115JSection 143(1)Section 14ASection 92C

documentation, for the provision of Software Development Services and Admin Support Services the assessee has applied Transaction Net Margin Method (TNMM) as the most appropriate method for determining the arm’s length price for the services rendered and considered the mark-up on total cost i.e. Operating profit / Total cost ... that international transaction for payment of management fees is a class of its own and the ALP of the transaction cannot be determined using TNMM and proceeded to calculate the ALP in respect of this transaction separately using CUP method. The TPO concluded that the assessee’s submissions are nothing

Dy.Commissioner of Income Tax Circle-1(1)(1), Bangalore vs. M/S Axa Group Solutions Private Limited, Bangalore

In the result, the appeals of the revenue are dismissed

ITA 555/BANG/2017[2011-12]Status: DisposedITAT Bangalore30 May 2022AY 2011-12

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

For Appellant: Shri Sankar Ganesh, Jt.CIT(DR)(ITAT), BengaluruFor Respondent: Smt. Tanmayee Rajkumar, Advocate

Section 10ASection 115JSection 143(1)Section 14ASection 92C

Levi Staruss (India) Private Limited, Bangalore vs. DCIT, Bangalore

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

ITA 695/BANG/2016[2011-12]Status: DisposedITAT Bangalore30 May 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 695/Bang/2016 Assessment Year : 2011-12 M/S. Levi Strauss (India) Pvt. Ltd., The Deputy Sjr Cyber, 7Th Floor, Commissioner Of No. 22, Laskar Hosur Road, Income Tax, Adugodi, Circle 4 (1)(1), Bangalore – 560 030. Vs. Bangalore. Pan: Aaacl3092Q Appellant Respondent Assessee By : Shri Nageswar Rao, Advocate : Dr. Manjunath Karkihalli, Revenue By Cit Dr Date Of Hearing : 31-03-2022 Date Of Pronouncement : 30-05-2022 Order Per Beena Pillaipresent Appeal Is Filed By The Assessee Against The Final Assessment Order Dated 28.01.2016 U/S. 143(3) R.W.S. 144C Of The Act By The Ld.Dcit, Circle – 4 (1)(1), Bangalore For Assessment Year 2011-12 On Following Grounds Of Appeal. “Based On The Facts & Circumstances Of The Case & In Law, Levi Strauss (India) Private Limited (Hereinafter Referred To As "Appellant") Respectfully Craves Leave To Prefer An Appeal Against The Order Passed By The Learned Assessing Officer (Hereinafter Referred To As The "Learned Ao") Under Section 143(3) Read With Section 144C Of The Income-Tax Act, 1961("The Act") On The Following Grounds:

For Appellant: Shri Nageswar Rao, Advocate

Section 143(3)Section 144C

learned AO have, erred, in law and in facts, by rejecting the internal RPM adopted by the Assessee and accepting the external TNMM, to determine the arm's length nature of international transactions undertaken by the Assessee; 9. The learned TPO and the learned AO have erred ... learned TPO and the learned AO, have erred in computing the operating margin of the Assessee while determining the TP adjustment under external TNMM analysis; Grounds relating to corporate tax matters 13. The learned AO has erred, in law and in facts, by treating certain advertisement and sales promotion expenditure

Deputy Commissioner of Income Tax -5(3)(1), Mumbai vs. Ratnakala Export Private Limited, Mumbai

In the result, the appeal of the Revenue stands dismissed

ITA 5454/MUM/2017[2012-13]Status: DisposedITAT Mumbai25 May 2022AY 2012-13

Bench: Shri Prashant Maharshi () & Kavitha Rajagopal () Dy. Commissioner Of Income-Tax- Vs Ratnakala Export Pvt Ltd 5(3)(1), Room No.519, 5Th Floor Dc-7250, Bharat Diamond Bourse Aayakar Bhavan, M.K. Road Bkc Bandra (E), Mumbai-400 051 Mumbai-400 020 Pan : Aaecr3763L Appellant Respondent

Section 143(3)Section 271GSection 92Section 92CSection 92C(1)Section 92D

correct in deleting the penalty levied u/s 271G by holding that the assessee had made substantial compliance, failing to note that under TNMM adopted by the assessee, the profit of the international transaction has to be furnished, whereas the assessee has only furnished the entire level margins which consists ... Assessee was in appeal before the Ld.CIT(A). The Ld.CIT(A) had stated that the TPO alleged that the Assessee has inappropriately applied the TNMM method and that by not furnishing of details the Assessee has not provided the basis for comparing the transactions of AE with another

Galax E Solutions India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITA 389/BANG/2021[2016-17]Status: DisposedITAT Bangalore25 May 2022AY 2016-17

Bench: Shri N.V. Vasudevan & Ms. S. Padmavathyit(Tp)A No.389/Bang/2021 Assessment Year : 2016-17 Galax E Solutions India Pvt.Ltd. Vs. The Deputy Commissioner Of Income Tax, Unit No.4, 8Th Floor, Innovator Block, Itpl, Circle -3(1)(1), Bangalore, Whitefield Road, Bangalore 560 066. Pan : Aabcg 9007 F Appellant Respondent Appellant By : Shri. C. J. Brito, Ca Respondent By : Shri. Sumeer Singh Meena, Cit, Dr. Date Of Hearing : 23.05.2022 Date Of Pronouncement : 25.05.2022 O R D E R Per N. V. Vasudevan: This Appeal By The Assessee Is Directed Against The Order Dated 26.5.2021 Of The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Bangalore, (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 Ay 2016-2017. 2. The First Issue To Be Decided In This Appeal Is With Regard To The Correctness Of Determination Of Arm’S Length Price In Respect Of An International Transaction U/S.92 Of The Act. The Assessee In Engaged In The Business Of Provision Of Software Development Services (Swd Services), To It’S Wholly Owned Subsidiary Company In Usa. In Terms Of The Provisions

For Appellant: Shri. C. J. Brito, CAFor Respondent: Shri. Sumeer Singh Meena, CIT, DR

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 on his own identified some other companies

ACIT 12(3)(2), Mumbai vs. Morgan Stanley Advantage Services P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed and Cross

ITA 1215/MUM/2016[2011-12]Status: DisposedITAT Mumbai24 May 2022AY 2011-12

Section 143(3)Section 144C(5)

during the year under consideration and the said international transaction has been benchmarked by the assessee using Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM). The Profit Level Indicator (PLI) used by the assessee is Operating Profit to Total Operating Cost (OP/TC). The assessee’s margin

M/S. Emerson Automation Solutions Intelligent Platforms Private Limited (Formerly M/S Ge Intelligent Platforms Private Limited), Bangalore vs. The Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore

In the result, grounds 10 and 11 are allowed for statistical purposes

ITA 356/BANG/2018[2013-14]Status: DisposedITAT Bangalore24 May 2022AY 2013-14

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm It(Tp)A No.356/Bang/2018 : Asst.Year 2013-2014 M/S.Emerson Automation The Assistant Commissioner Solutions Intelligent Platforms Of Income-Tax, Circle 3(1)(2) V. Bangalore. Private Limited (Formerly Known As M/S.Ge Intelligent Platforms Private Limited) Velankani Tech Park, Building 9 First Floor, 43 Hosur Road Bangalore 560 100 Pan : Aaacg7573K (Appellant) (Respondent) Appellant By : S/Sri.Sachit Jolly & Aayush Nagpal, Advocates Respondent By : Sri.Sumer Singh Meena, Cit-Dr Date Of Pronouncement : 24.05.2022 Date Of Hearing : 17.05.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 30.10.2017 Passed U/S 143(3) R.W.S. 144C Of The I.T.Act. The Relevant Assessment Year Is 2013-2014. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is A Company Engaged In The Business Of Process Industrial Automation That Includes Manufacture & Trading Of Automation Products, Solutions & Services For The Process Controlled Application. For The Relevant Assessment Year The Return Of Income Was Filed By The Assessee On 29.11.2013 Declaring Total Loss Of Rs.1,06,46,560. The 2 It(Tp)A No.356/Bang/2018 M/S.Emerson Automation Solutions Intelligent Platforms Pvt.Ltd Assessment Was Selected For Scrutiny By Issuance Of Notice U/S 143(2) Of The I.T.Act. During The Course Of Assessment Proceedings, The Matter Was Referred To The Transfer Pricing Officer (Tpo) To Determine The Arm’S Length Price (Alp) Of The International Transactions Undertaken By The Assessee With Its Associated Enterprises (Aes). The Tpo Vide Order Dated 31.10.2016 Passed U/S 92Ca Of The I.T.Act Proposed The Following Adjustments:- Segment Value Of Adjustment (Rs.) Manufacturing Segment 4,43,23,760 Hq Charges 86,39,654 Total 5,37,40,836

For Appellant: S/Sri.Sachit Jolly & Aayush Nagpal, AdvocatesFor Respondent: Sri.Sumer Singh Meena, CIT-DR

Section 143(2)Section 143(3)Section 71Section 92C

erred in law and facts in Considering Comparable Uncontrolled Price ("CUP") method as most appropriate method and not accepting Transactional Net Margin Method ('TNMM') adopted by the Assessee for determining the Arm's Length Price (,ALP') of the international transaction of payment of HQ charges. (corresponding to original ground ... class of its own and ALP of the 9 IT(TP)A No.356/Bang/2018 M/s.Emerson Automation Solutions Intelligent Platforms Pvt.Ltd transaction cannot be determined using TNMM. In order to understand the nature of services received, the TPO called for copy of the agreements, break up of the services received, need

Toyota Kirloskar Auto Parts Private Limited, Ramanagara vs. Assistant Commissioner of Income Tax, Ltu, Circle-2, Bangalore

In the result, the appeal is treated as partly allowed

ITA 301/BANG/2021[2016-17]Status: DisposedITAT Bangalore23 May 2022AY 2016-17

Bench: Shri N. V. Vasudevan & Shri Laxmi Prasad Sahuit(Tp)A No.301/Bang/2021 Assessment Year : 2016-17 M/S. Toyota Kirloskar Auto Parts Pvt. Ltd., Acit, Vs. Plot No.21 Bidadi Industrial Area, Circle –2, Ltu, Bidadi, Ramanagara, Bengaluru. Bengaluru-562 109. Pan : Aabct 5590 Q Appellant Respondent

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. Pradeep Kumar, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 92

No.301/Bang/2021 Page 3 of 12 4. To justify the price paid is at arm’s length, the assessee filed a TP study adopting TNMM as the most appropriate method for determining ALP. This was rejected by the TPO and he proceeded to apply Profit Split Method ... assessee was using the technology for a fairly long period of more than 5 years, it would not be proper to adopt the TNMM as the MAM, as the economic life of the technology would no longer exist. In our view, there is no basis for .be TPO as well

Deputy Commissioner of Income Tax, Circle- 6(1)(2), Bengaluru vs. M/S. Symbol Technologies India Private Limited, Bengaluru

In the result, appeal by the assessee and that by the Revenue are treated as partly allowed

ITA 2221/BANG/2019[2011-12]Status: DisposedITAT Bangalore20 May 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Shri Laxmi Prasad Sahu

For Appellant: Shri. Aliasgar Rampurwala, CAFor Respondent: Shri. Pradeep Kumar, CIT(DR)(ITAT), Bengaluru

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. 6. 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 accepted 2 companies chosen by the assessee

M/S. Symbol Technologies India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 6(1)(2), Bengaluru

In the result, appeal by the assessee and that by the Revenue are treated as partly allowed

ITA 2057/BANG/2019[2011-12]Status: DisposedITAT Bangalore20 May 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Shri Laxmi Prasad Sahu

For Appellant: Shri. Aliasgar Rampurwala, CAFor Respondent: Shri. Pradeep Kumar, CIT(DR)(ITAT), Bengaluru

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. 6. 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 accepted 2 companies chosen by the assessee

Dow Chemicals International Pvt Ltd. As Successor of Rohm and Haas (India) Pvt Ltd, Mumbai vs. ITO 14 (1)(3), Mumbai

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

ITA 7936/MUM/2019[2015-16]Status: DisposedITAT Mumbai19 May 2022AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2015-16 Dow Chemical International Private Income Tax Officer-14(1)(3), Limited As Successor Of Rohm & Hass Room No. 458, 4Th Floor, (India) Private Limited, Vs. Aayakar Bhavan, M.K. Road, Godrej It Park-P2, 1St Floor Block B, 02, Mumbai-400020. Lbs Road, Godrej Business District, Pirojshanagar, Vikhroli (West), Mumbai-400079. Pan No. Aaacr 2855 F Appellant Respondent

For Appellant: Mr. Rajan R. Vora/For Respondent: Dr. Yogesh Kamat, CIT-DR

Section 92C

transaction of import of raw materials from Associated Enterprises ('AEs'). Inappropriate rejection of Cost-Plus Method ('PM') and instead adopting Transactional Net Margin Method ('TNMM') as most appropriate method ('MAM') 3. erred in not accepting the economic analysis undertaken by the Appellant under PM. In accordance with the provisions ... Private Limited Act, 1961 ('Act') read with the Income Tax Rules, 1962 ('Rules') for determination of the arm's length price and instead adopting TNMM as the MAM. 4. erred in making an incorrect observation that the Appellant is a loss-making concern and hence has chosen PM to benchmark

Fremantle India Television Productions Pvt Ltd., Mumbai vs. Asst CIT Circle- 16 (1), Mumbai

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

ITA 7894/MUM/2019[2015-16]Status: DisposedITAT Mumbai19 May 2022AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2015-16 Fremantle India Television The Asst. Commissioner Of Productions Private Limited, Income-Tax, Circle 16(1), 109, Shalimar Morya Park, Vs. Aayakar Bhavan, Plot B-2, Off New Link Road, Mumbai-400020. Oshiwara, Andheri West, Mumbai-400053. Pan No. Aaacf 0436 A Appellant Respondent Assessee By : Mr. M.P. Lohia/ Mr. Hemen Chadariya, Ars Revenue By : Dr. Satya Pinisetty, Cit-Dr Date Of Hearing : 16/03/2022 Date Of Pronouncement : 19/05/2022

For Appellant: Mr. M.P. Lohia/For Respondent: Dr. Satya Pinisetty, CIT-DR

Section 271

contravention of the Hon"ble DRP directions which directed the arms-length price to be equivalent to the cost of production and rejecting external TNMM applied by the TPO, thereby making the assessment order illegal and void. 7. The learned AO failed to appreciate the directions

DCIT-5(1)(2), Mumbai vs. M/S Dharmanandan Diamonds Pvt Ltd., Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 4232/MUM/2019[2013-14]Status: DisposedITAT Mumbai19 May 2022AY 2013-14

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2013-14 Dy. Commissioner Of Income- M/S Dharmanandan Tax, Circle 5(1)(2), Diamonds Pvt. Ltd., R.No. 568, Aayakar Bhavan, Vs. Fc-7081-82, M.K. Road, Bharat Diamond Bourse, Mumbai-400020. Bkc, Bandra (East), Mumbai-400051. Pan No. Aaccd 6676 J Appellant Respondent Revenue By : Dr. Yogesh Kamat, Cit-Dr Assessee By : Rashmikant C. Modi/ Ketki Rajeshirke, Ars Date Of Hearing : 23/03/2022 Date Of Pronouncement : 19/05/2022

For Appellant: Rashmikant C. Modi/For Respondent: Dr. Yogesh Kamat, CIT-DR

Section 271GSection 92Section 92DSection 92D(3)

deleting the penalty levied u/s. 271G of the Act, by holding that the assessee had made substantial compliance, failing to note that under TNMM adopted by the assessee, the profit of the international transaction has to be furnished, whereas the assessee has only furnished the entity level margins which consists ... Associated Enterprises (AEs) situated overseas. For determination of the arm’s-length price of those transactions, the assessee applied Transactional Net Margin Method (TNMM) as the most appropriate method. The assessee submitted two different working of segmental result for AE and non-AE transactions. In one working, the assessee

First Credit Ites P. Ltd, Mumbai vs. Addl/Jt.Dy/CIT/ITO, National E -Assessment Centre, Delhi

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

ITA 1183/MUM/2021[2016-17]Status: DisposedITAT Mumbai18 May 2022AY 2016-17

Bench: Shri Vikas Awasthy, Jm & Shri Prashant Maharishi, Am First Credit Ites P. Ltd. The Addl. Commissioner Of D-211, Ghatkopar Indl. Estate, Income-Tax Officer Behind R-City Mall, National E-Assessment Off L.B.S Marg, Vs. Centre, Ghatkopar West, Delhi-110003 Mumbai-400 086 (Appellant) (Respondent) Pan No.Aabcf5210B Assessee By : Shri Sunil Moti Lala, Ar Revenue By : Shri Tejinder Pal Singh, Dr Date Of Hearing: 22.02.2022 Date Of Pronouncement : 18.05.2022

For Appellant: Shri Sunil Moti Lala, ARFor Respondent: Shri Tejinder Pal Singh, DR

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

case. 1.2. On the facts and circumstances of the case, the DRP/AO/TPO have erred in law by considering the Transactional Net Margin Method (TNMM') as the most appropriate method for benchmarking the First Credit ITES Pvt. Ltd.; AY 16-17 international transaction of the provision of services to its Associated ... submitted by the Appellant during the DRP proceedings. 1.4. The DRP/TPO have erred in considering the following companies as comparable to the Appellant under TNMM though the same are not functionally comparable to the Appellant. • HCL Global Processing Services Ltd. • Inteq BPO Services Pvt. Ltd. • Manipal Digital Systems

Additional Commissioner of Income Tax (Ltu), Bangalore vs. M/S Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 606/BANG/2019[2014-15]Status: DisposedITAT Bangalore17 May 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

replica, even when the law and the international jurisprudence itself recognize that there cannot be an exact comparable to a given situation, especially with TNMM as the most appropriate method? 7. Whether the Hon’ble CIT(A) was right in law in demanding comparability standards that may itself defeat ... services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM) as the most appropriate method for determining ALP. The profit level indicator (PLI) chosen for the purpose of comparing assessee’s margin with that

M/S Texas Instruments India Pvt Ltd, Bangalore vs. Additional Commissioner of Income Tax Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 365/BANG/2019[2014-15]Status: DisposedITAT Bangalore17 May 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Joint Commissioner of Income Tax, Ltu, Bangalore vs. M/S. Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1447/BANG/2019[2013-14]Status: DisposedITAT Bangalore17 May 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru