Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 1385 - ITAT BENGALURUTP Adjustment - MAM - adopting TNMM at entity level - assessee contended that the assessee-company submitted that TP study report adopting TNMM at entity level and this was accepted by the TPO and therefore, there was no need of separate bench marking in respect of transactions of royalty and technical fee as the same formed part of operating expenditure - HELD THAT:- In the present case, the TP study submitted by the assessee was accepted by the TPO. However, the TPO had chosen to make a separate bench marking in respect of transaction of royalty and management fees. There is no dispute that there was a close nexus between these transactions and other transactions. Therefore, it requires aggregation of these transactions with other transactions, and the most appropriate method is to adopt TNMM at entity level for the purpose of the bench marking the transactions. Accordingly, we remand the matter back to the file of the TPO/AO to aggregate transaction of royalty and management fee with other transactions and bench mark the same with other transactions by adopting TNMM at entity level.
|