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2017 (7) TMI 352 - AT - Income TaxTPA - rejection of CUP Method as the most appropriate method and following TNMM by the TPO - Hel that:- As seen from the order of DRP, the assessee has only filed the purchase invoice relating to its purchase from its AE and also filed back to back invoice copies relating to AE purchasing to the tune of ₹ 286,289,140.43. However, the assessee had not substantiated that AE has not derived any benefit or mark up on the price charged by the vendor for supply of material to it (AE), which it has sold to the present assessee. Unless the assessee filed full details of financial statement to show that the assessee’s AE has not derived any benefit, it is not possible to apply the CUP method. In view of this, in the interest of justice, we remit the issue regarding application of the method whether the CUP Method or TNMM as a most appropriate method, to the file of AO to see whether the AE derived any benefit or mark up on the price charged by the vendor for supply of raw materials to assessee’s AE, which it has sold to assessee. - Appeal of assessee is partly allowed for statistical purposes.
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