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2017 (11) TMI 585 - HC - Income TaxApplication of Berry Ratio and Transactional Net Margin Method (TNMM) method - MAM - adjustment made in the present case unsupported by proper application of Rules 10B or 10C of the Income Tax Rules, 1962 - Held that:- The assessee has used Berry Ratio while applying TNMM to benchmark the international transactions. Once, CUP has been accepted as the most appropriate method there is no question of applying any other method to corroborate the analysis made under CUP. The assessee has to explain the benchmarking of international transactions by applying the most appropriate method selected to benchmark the transaction. This Court is of the opinion that the Tribunal’s findings cannot be faulted. The interest offering which the assessee emphasises is nothing but an income attributable to the transaction which it had sought to utilize. In the circumstances, the authorities’ decision, therefore, cannot be characterized as erroneous. The provisions of the acts and rules apply in making the adjustments in the present case; the same would apply even in the case of discount for the sale transaction which was undertaken after six months.
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