Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (3) TMI 898 - AT - Income TaxTransfer pricing - ALP – Comparable - assessee supplied software to Vedaris, UK, which was an international transaction - documents were not maintained to justify the ALP on cost plus method, the matter was discussed further with the assessee and finally the Transactional Net Margin Method ("TNMM" for short) was adopted for determining the ALP - CIT(A) was of the view that there were five valid comparables – Held that:- Four comparables were involved in different lines of business and, therefore, did not meet requirements of rule 10C, which was a major factor in judging comparability of a case – on facts, ALP was to be determined only on basis of remaining one comparable - proviso as it existed for the relevant assessment year states that where more than one price is determined by the most appropriate method, ALP shall be taken to be arithmetical mean of such price, or, at the option of the assessee, a price which may vary from the arithmetical mean by an amount not exceeding 5 per cent of such arithmetical mean - provision is applicable where more than one price is determined by the appropriate method - there is only one comparable case of Soffia Software Ltd. Since more than one price has not been determined, the proviso is not applicable on the facts and in the circumstances of this case - appeal of the revenue dismissed
|