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2021 (4) TMI 452 - AT - Income TaxTP Adjustment - Comparable selection - most appropriate method as well as computation of margins etc. using TNMM method - HELD THAT:- The dispute as to adoption of most appropriate method as well as computation of margins etc. using TNMM method was the subject matter of revenue’s appeals as well as assessee’s cross-objections before this Tribunal in AYs 2005-06 to 2007-08 [2016 (6) TMI 100 - ITAT MUMBAI] and [2019 (6) TMI 1529 - BOMBAY HIGH COURT] - We find that the issue of adoption of TNMM and the issue of manner of TP adjustment which is to be done, as of now, has attained finality and the aforesaid decision is binding upon us. Proceeding further, straightway going to the alternative plea of Ld. AR that even if TNMM method is accepted, the assessee’s margin, after providing benefit of tolerance range of +5%, would be within Arm’s Length Price. The working of the same has been placed in the paper-book. Keeping in view the earlier decision of Tribunal the bench is inclined to accept this plea. Therefore, without delving much deeper into the issue, we direct Ld. TPO to apply TNMM but restrict the adjustments only to the extent of international transactions carried out by the assessee and not to entire segment of manufacturing activity. TPO is directed to verify the computations made by the assessee and decide accordingly. The benefit of tolerance range of +5%, as provided in law, would be available to the assessee. Consequently, the revenue’s ground, to that extent, stands allowed which would render assessee’s cross-objection infructuous. So far as the issue of market research expenses is concerned, we find that this issue is squarely covered in assessee’s favor by the decision of this Tribunal for AYs 2005-06 to 2007-08 [2016 (6) TMI 100 - ITAT MUMBAI]. In view of this uncontroverted fact, this ground stand dismissed.
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