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2018 (10) TMI 1183 - AT - Income TaxTPA - If transactions are both with the AE and Non-AE, whether it is correct to adopt Entity level approach - MAM selection - TNMM application - Held that:- Similar issues involved in the present appeal were considered by the Tribunal in assessee’s own case [2017 (12) TMI 809 - ITAT DELHI]TNMM can be correctly applied on entity level if the international transactions are on sale by the taxpayer to its foreign AE and there is no other international transaction of sale to any outsider and also there is no other international transaction. AO/TPO/DRP have erred in disregarding the segmental result of the taxpayer by proceeding to consider the margin of the taxpayer at the entity level for the transfer pricing analysis. So, by accepting the TNMM as the most appropriate method and in the face of the fact that the taxpayer was having separate international transaction with its AE, the ALP of the same is to be determined whereas ALP of the other transactions of the taxpayer with non-AE is not to be considered. Respectfully, following the findings of the coordinate bench, we direct the TPO to decide the issue afresh after considering the directions of the coordinate bench [supra]. - Appeal of assessee allowed for statistical purposes.
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