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2013 (2) TMI 322 - ITAT MUMBAITransfer Pricing – Arm length Price - International transaction entered into with Associated Enterprise - TPO has not accepted the ALP of international transaction – Assessee is following CPM (Cost plus method) whereas TPO argued for TNMM (Transactional Net Margin Method) as appropriate Held that:- Where an assessee has followed one of standard methods of determining ALP, such a method cannot be discarded in preference over transactional profit methods, unless revenue authorities are able to demonstrate fallacies in application of standard methods. While there is no particular order or priority of methods which the assessee must follow and no method can invariably be considered to be more reliable than others, TNMM and Profit Split Method (PSM) are treated as methods of last resort which are pressed into service only when the standard methods i.e. CUP Resale Price Method (RPM) and Cost Plus Method (CPM) cannot be reasonably applied. As concluding from the facts of the case if we exclude four super normal profit companies from the list of comparables and recompute the OPM from the list of comparables adopted by the TPO, the average OPM comes to 18.91% whereas the Net Profit Margin of the assessee is 18.11%. Do not any reason for TP adjustment. In favour of assessee
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