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2019 (8) TMI 49 - ITAT MUMBAITP adjustment - adoption of most appropriate method - RPM v/s TNMM - assessee had adopted Resale Price Method (RPM) whereas TPO had adopted Transactional Net Margin Method (TNMM) in the distribution segment of the assessee - HELD THAT:- As find from the TP study report that assessee had separately benchmarked its international transactions with AE under manufacturing segment as well as under distribution segment. We find from Paper Book that assessee had duly submitted the segmental profitability statement from manufacturing segment and trading segment before the TPO vide letter dated 16/12/2015. All the aforesaid evidences would squarely go to prove that assessee had separately benchmarked its manufacturing segment and its distribution segment. Only for its distribution segment, the assessee had applied resale price method as most appropriate method. The fact of the assessee holding inventories , paying excise duty are all relevant for its manufacturing segment and has got absolutely nothing to do with the transactions carried out in its distribution segment. Hence, we hold that the lower authorities have proceeded the entire issue on total misconception of facts ignoring the relevant materials on record. We direct the ld. TPO to apply RPM as the most appropriate method and recompute the margins of the assessee accordingly and make any adjustment to ALP thereon, if warranted. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
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