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2022 (7) TMI 904 - HC - Income TaxTP adjustment - application of the Resale Price Method (RPM) as the Most Appropriate Method (‘MAM’) - authorities below have found that 95% of the business of the assessee involves trading activity - HELD THAT:- As the mere fact that the assessee had relied on TNMM in its transfer pricing report would not in any way preclude the ITAT from adopting the RPM as the MAM under Section 92C of the Act, if it so finds in the circumstances of the case. The decision of Supreme Court in Kedarnath Jute Manufacturing Co. Ltd.[1965 (4) TMI 91 - SUPREME COURT] is an authority for the proposition that tax authorities and adjudications as well as assessee are not precluded by the positions taken in returns, documents or accounts and have the duty (and a corresponding right) to apply the correct legal principle. Thus, the use of one method in a transfer pricing report does not estop the assessee from later claiming that another method is the most appropriate one, provided that is indeed the correct position. See MATRIX CELLULAR INTERNATIONAL SERVICES (P.) LTD., [2017 (11) TMI 1655 - DELHI HIGH COURT] held that use of one method in a transfer pricing report does not estop the assessee from later claiming that another method is the most appropriate one, provided that is indeed the correct position. No substantial question of law.
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