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2023 (4) TMI 1233 - AT - Income TaxTP Adjustment - selection of MAM of the distribution transaction - TNMM v/s RPM - DRP confirmed the findings of the learned TPO that TNMM is the most appropriate method - assessee contending that when once the ITAT concluded in the first round of litigation that the business of the assessee is merely that of a pure distributor, then it is, but natural to conclude that the Resale Price Method (RPM) is the most appropriate method - HELD THAT:- A copy of the order [2020 (12) TMI 458 - ITAT HYDERABAD] in assessee’s own case, considered the functional profile of the assessee in the light of the terms of distribution agreement and held that the assessee is a distributor and not a service provider and also that RPM is the MAM. Since there is nothing contrary on record, we find it difficult to take a different view for this year under consideration. We, therefore, accordingly set aside the impugned findings of the authorities below on this aspect and restore the issue to the file of AO/ TPO to consider the RPM as the MAM and take a view on the necessity of any adjustment towards ALP for distribution function, after hearing the assessee. Appeal of the assessee is treated as allowed for statistical purposes.
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