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2023 (4) TMI 578 - HC - Income TaxTP Adjustment - MAM - Tribunal had remanded the matter to the TPO as to whether the “other method” would be the most appropriate method, as was contended by the respondent/assessee? - For several years assessee had been using TNMM for benchmarking its transactions - Out of the eighteen (18) transactions, was agreed that sixteen (16) transactions will be benchmarked by using the other method while the remaining two (2) transactions will be benchmarked by using Transaction Net Margin Method (TNMM) and Resale Price Method - HELD THAT:- According to us, the approach adopted by the Tribunal is wholesome. A perusal of the impugned order shows that the Tribunal was conscious of the fact that the assessee could enter into the APA with CBDT only from AY 2013-14. Thus, having regard to this limiting factor and given the complexity of the transaction which the respondent/assessee is involved in, the Tribunal thought it fit that the APA could be used to benchmark the transactions even for the AY in issue. As correctly pointed out by Respondent this direction is ring-fenced with the caveat that the TPO will have to determine as to whether the FAR in the given AY is the same as those which are covered in the APA.We may also note that the Tribunal has cited several judgments of various Benches of the Tribunal in adopting this approach - we are of the view that no error has been committed by the Tribunal concerning either in the application of law or on facts.
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