Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1389 - HC - Income TaxTP Adjustment - MAM selection - AO Adopted the CUP method as Most Appropriate Method (MAM) - ITAT confirmed adoption of TNMM by the assessee as the Most Appropriate Method - HELD THAT:- Tribunal considering the material on record has given the finding of fact that the TNMM applied by the assessee is the correct method and the application of CUP method was not justified, in view of the fact that intra AE transactions were fundamentally different in character in economic circumstances and contractual terms and these cannot be compared with the independent transactions entered into by the assessee. Tribunal has further discarded the view of the TPO dealing with the internal TNMM adopted by the assessee with regard to the basis of allocating the overrates being not clear, by observing that the revenue and expenses have been allocated on actual basis wherever the same were directly allocable and wherever the same were not directly allocable, allocation was made on the basis of the appropriate allocation key such as ratio of sales quantity, sales revenue and total revenue - segmental details have been reconciled with entity level audited accounts. TPO did not have any objection with regard to the allocation made by the assessee, but explanation given by the assessee was simply rejected as “not accepted”. CIT (A) also did not refer to any flow to the allocations made in the segmental accounts and discussed the issue on generalities only The Tribunal has taken into consideration the voluminous documentary evidence on record for the purpose of coming to the conclusion of adoption of TNMM by the assessee as the Most Appropriate Method of arriving at ALP. Delhi High Court in the case of Make My Trip India (P.) Ltd. [2017 (11) TMI 587 - DELHI HIGH COURT]has also held that difference of opinion as to the appropriateness of one or the other method cannot be gone into in the appeal under Section 260A of the Act, 1961. Decision of the Tribunal is correct and requires no interference and no question of law much less any substantial question of law can be said to have arisen from the impugned order of the Tribunal. In the result, these appeals fail and are hereby dismissed.
|