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2016 (11) TMI 1628 - AT - Income TaxTP adjustment - selection of MAM - TNMM OR CUP as the most appropriate method - HELD THAT:- The requirement of law is that the most appropriate method suitable for determining the ALP is to be adopted. Merely because the assessee has adopted the CUP method, it will not become the most appropriate method. AO, after conducting the FAR analysis has to determine the most appropriate method. It has been held time and again that the proceedings before the first appellate authority are continuation of the assessment proceedings itself. It is the bounden duty of the CIT (A) to examine the most appropriate method for determination of the ALP particularly when the assessee itself is challenging the method adopted by it in its TP study. In view of the same, we are satisfied that the TNMM is the most appropriate method and therefore, we deem it fit and proper to set aside the orders of the authorities below and remand the issue of determination of the ALP to the file of the AO by adopting the TNMM as the most appropriate method
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