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2020 (6) TMI 49 - ITAT MUMBAITransfer Pricing Adjustments - Selection of MAM - HELD THAT:- We find that TNMM method as adopted by the assessee in earlier years has constantly been accepted to be the Most Appropriate Method as against the observation of Ld. TPO that it was to be applied as a last resort. We find that similar facts exist in this year. Applying TNMM method, the assessee’s margins in AE segment are much higher than margin in non-AE segment and therefore, it could be stated that the transactions were at Arm’s Length. No infirmity has been pointed out by any of lower authorities in assessee’s methodology. Therefore, respectfully following the earlier order of Tribunal in assessee’s own case, we hold that TNMM method as adopted by the assessee was appropriate methodology and therefore, no TP adjustment would be warranted on these transactions. Corporate Guarantee - HELD THAT:- The rate of 1.25% would apply to gross amount of guarantee given by the assessee and not on the actual loan availed by AE as held in Mumbai Tribunal in Laqshya Media Pvt. Ltd. [2017 (1) TMI 1519 - ITAT MUMBAI]. Corporate Adjustment - deduction u/s 35(2AB) being 200% of amount incurred towards scientific research - HELD THAT:- As rightly contended by the assessee before Ld. DRP that the issue is squarely covered in assessee’s favor by the decision of Pune Tribunal in Cummins India Ltd. V/s DCIT [2018 (5) TMI 1314 - ITAT PUNE] - we hold that Ld.AO was not justified in curtailing the deduction u/s 35(2AB) in the pre-amended period. Therefore, by deleting the impugned additions.
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