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2020 (2) TMI 255 - ITAT DELHITP Adjustment - benchmarking of international transactions - selection of MAM - HELD THAT:- When we examine the order passed by the ld. CIT(A) it has come on record that, “during the appellate proceedings, the taxpayer has failed to provide working of the net profit margin for 2 segments i.e. outbound and inbound travel related services, however on combined basis i.e. AE as well as non-AE transactions taking together nor separately for AE and another party from which internal comparables can be examined on TNMM for inbound and outbound services”. This factual position has not been disputed by the ld. AR for the taxpayer. In the absence of working of net profit margin of internal comparables for inbound and outbound services, the issue as to benchmarking the international transactions cannot be decided. Now, the taxpayer has come up with segmental account in tabulated form explained in page 2 & 3 of the synopsis which is required to be examined by the TPO to benchmark the international transactions. So, the TPO is directed to benchmark the international transactions by applying TNMM on the basis of internal comparables in view of the working supplied by the taxpayer. So, the case is remanded back to the TPO to decide afresh after providing opportunity of being heard to the taxpayer by following the decisions rendered by the Tribunal in AYs 2007-08 & 2006-07 in taxpayer’s own case. Consequently, the appeal of the taxpayer is allowed for statistical purposes.
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