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2021 (11) TMI 1173 - AT - Income TaxTP Adjustment - MAM selection - CUP method or TNMM - HELD THAT:- We respectfully following case of Sumitomo Corporation India (P.) Ltd. [2018 (10) TMI 1785 - ITAT DELHI] has held as under:-hold that the CUP method cannot be applied in the case of the assessee for making an adjustment to the commission income of the assessee. The co- ordinate bench has also held that TNMM is the only method, which can be applied. Accordingly, the addition made on substantive basis adopting the CUP method is deleted. Accordingly, ground of the appeal are allowed. Benchmarking of the commission income from associated enterprises other than Japan - AO/TPO is directed to not to adopt CUP method for computation of the arm’s-length price of the indent in business from non-Japan associated enterprises. Also is directed to adopt transactional net margin method adopting the berry ratio for computing the arm’s-length price of the indent in business income from known the associated enterprises and not to consider the free on-board value of goods imported/exported while working out the arm’s-length price from either operating income or operating expenditure of the assessee. The assessee is directed to submit fresh set of comparables. TPO is directed to examine the same, he may reject or include fresh comparables. Thus, the fresh comparability analysis is required to be conducted.
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