Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1785 - HC - Income TaxTP Adjustment - applicability of the other method for bench marking international transactions under Section 92C for which the assessee claimed applicability of Rule 10B (brought into force w.e.f. 2012-13) - HELD THAT:- TP’s report in the present instance clearly claims that the other method is the most appropriate method and proceeds to outline why the revisions for its adoptions in certain transactions even while using the TNMM for others. This aspect has not been examined by the ITAT - and also apparently by the DRP - which had at the same time rejected the AO’s remand report. Given these facts and the circumstances that the other method was introduced for the first time, and also given the fact that there does not appear to be much judicial thinking on the application of the other method as most appropriate method and all the considerations should weigh to the tax administrators in this regard vis-a-vis revenue and cost allocation, this Court is of the opinion that the ITAT should have proceed with the matter afresh instead of having remanded the matter totally to the TPO, as it did in the circumstances. In these circumstances, the impugned order is modified. The ITAT is directed to go into the matter afresh and return the findings both on the question of law and the facts afresh.
|