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2020 (7) TMI 659 - AT - Income TaxTP Adjustment - MAM selection - Comparable Uncontrolled Price (“CUP”) method OR Transactional Net Margin Method (“TNMM”) - rejection of CUP method followed by the assessee and holding the TNMM method as the most appropriate method to benchmark the international transactions with AE's - HELD THAT:- We find that the assessee has been following the CUP method for benchmarking the international transactions which is an accepted industry norm in the year under consideration and the same method was also followed by it in earlier years. We find that the Co-ordinate Bench of Tribunal while deciding assessee's appeal for AY 2006-07 & 2007-08 had on identical facts decided the issue in assessee's favour. Against the order of the Tribunal for AY 2006-07 and AY 2007-08, Revenue had carried the matter before the Hon'ble Delhi Court. The Hon’ble High Court [2015 (12) TMI 1513 - DELHI HIGH COURT]had dismissed the appeals of the Revenue. We do not find much force in the argument placed by the Revenue. We further find that the aforesaid decision of Hon’ble High Court has not been stayed/overruled/set-aside by higher judicial forum. Considering the totality of the aforesaid facts, we are of the view that the ratio of the decision of Hon’ble High Court in assessee’s own case for A.Y. 2006-07 and 2007-08 would be applicable to the facts of the case in the year under consideration. AO/TPO was not justified in directing the adjustment to the arm’s length price. - Decided in favour of assessee. Disallowing setting off of previous years’ losses claimed by the Assessee in the return of income - HELD THAT:- e. In view of the submissions of the Ld AR, we restore the issue to the file of AO. If the contentions of the assessee are found correct by the AO, then the AO is directed to grant set off of previous years’ losses in accordance with law. Assessee is also directed to furnish the necessary details as called for by the AO.
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