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2019 (8) TMI 176 - AT - Income TaxTPA - selection of TNMM by the assessee for benchmarking the transactions - Whether margin of the tested party is at arm’s length to the margins of the comparable companies? - HELD THAT:- No infirmity in the selection of TNMM by the assessee for benchmarking the transactions. We have already held that the assessee has rightly selected the AE as tested party. Thus, the international transactions of payment of fees for technical assistance services is to be benchmarked by comparing the margins of the CWT, Singapore (tested party) with the margins of seven entities selected by the assessee as comparables. The Ld. counsel has further pointed out that the comparable companies are engaged in the similar kind of services. Hence, we find substance in the contention of the Ld. counsel for the assessee, however, since the TPO has not verified the margins shown by the assessee vis-à-vis the companies selected by the assessee as comparables, we respectfully following the decision of the Pune Bench of the Tribunal in the case of Emerson Climate Technologies (India) Ltd [2017 (12) TMI 1568 - ITAT PUNE] restore this issue to the file of AO/TPO for a limited purpose of verification as to whether the margin of the tested party is at arm’s length to the margins of the comparable companies. Needless to say, that the authorities shall give a reasonable opportunity of being heard to the assessee while deciding the said issue
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