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2021 (2) TMI 1321 - ITAT MUMBAITP Adjustment - most appropriate method to benchmark the transaction with the AE - applicability of internal TNMM as opposed to external TNMM - HELD THAT:- Tribunal in assessee’s own case for Assessment Year 2011-12 [2017 (5) TMI 1795 - ITAT MUMBAI] has held that internal TNMM as adopted by the assessee is the most appropriate method to benchmark the transaction with the AE. Following the aforesaid decision,while deciding assessee’s appeal for AY 2012-13 in [2019 (11) TMI 1774 - ITAT MUMBAI] has reiterated that internal TNMM is the most appropriate method to benchmark the transaction with AE. Thus, following the consistent view of the Tribunal in assessee’s own case, as referred to above, we hold that the international transaction with the AE has to be benchmarked by applying internal TNMM as adopted by the assessee. Accordingly, we restore the issue back to the AO for examining assessee’s benchmarking under internal TNMM and in case the assessee is able to justify its own benchmarking, then it has to be accepted. Of course, the AO while deciding the issue must provide due opportunity of hearing to the assessee.
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