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2022 (6) TMI 1367 - ITAT BANGALORETP Adjustment - MAM selection - contradicting observations about the MAM followed by the assessee for determination of ALP - TPO has stated that the assessee has followed TNMM as MAM, whereas again he has noted that assessee has followed internal CUP method for arriving at the ALP - HELD THAT:- The basis on which the TPO has proceeded with the comparability analysis is on the wrong fact that the assessee followed CUP method as the MAM. DRP has also not taken note of this contradicting findings of the TPO in his order and has proceeded to confirm the TP adjustment made by the TPO. The assessee in its TP study has clearly stated that the MAM followed in arriving at the ALP by the assessee is TNMM. Application of internal TNMM and other external comparables followed by the assessee - As we notice that the coordinate Bench of the Tribunal in assessee’s own case for the AYs 2011-12 & 2012-13 has upheld the internal TNMM used by the assessee for determination of the ALP for international transactions. Since the TPO in the present year under consideration has proceeded to make the TP adjustment on the mistaken fact that assessee has followed CUP method, we deem it fit and appropriate to remit this issue back to the TPO for fresh analysis considering the actual method followed by the assessee i.e., TNMM as the MAM. The TPO is also directed to consider the principles laid down by the coordinate Bench of the Tribunal in the earlier years in assessee’s own case in terms of considering the internal comparables for TNMM and also the stand taken by the TPO for the AY 2016-17 where the internal comparables has been accepted. Appeal by the assessee is allowed for statistical purposes.
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