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2023 (7) TMI 511 - HC - Income TaxTP adjustment - MAM - methodology to be adopted while benchmarking the international transaction of respondent - TPO was of the view that CUP method was most appropriate method to be applied - HELD THAT:- Since the transaction picked up for comparison by TPO was very negligible, on the basis of small sales made by respondent of similar components, CIT(A) held that there is no merit in applying the CUP method. CIT(A) also observed that the methodology adopted by respondent in applying CPM method had been accepted from AY 2008-09 to 2010-11 by the TPO himself and no adjustment has been made in the hands of respondent. The assessment orders for those assessment years are also on record. CIT(A) came to the conclusion, which was correctly upheld by the ITAT, that there was no merit in the order of TPO in applying the CUP method to benchmark the international transaction of export to AE in the hands of respondent. TP adjustment on receipt of commission from the AE - respondent in TP report had applied the CUP method for benchmarking the international transactions with its AE - Respondent had applied CUP method in all the years starting from 2006-07 to 2010-11. TPO for the assessment year under consideration, i.e., AY 2005-06 applied internal rate of return as the most appropriate method for benchmarking international transactions, but, in the succeeding years starting from AY 2006-07 to 2010-11, TPO had applied CUP method. CIT(A), therefore has rightly rejected the methodology adopted by TPO and ITAT has correctly upheld the findings of CIT(A). No substantial questions of law arise.
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