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2020 (12) TMI 295 - ITAT HYDERABADTP Adjustment - MAM selection - assessee had adopted Comparable Un-controlled Price method (CUP method) for arriving at the ALP on the ground that the A.E. had entered into similar transactions with unrelated parties in India, and, therefore, the internal CUP method is applicable and should be adopted - TPO rejected the CUP method adopted by the assessee and has adopted Transactional Net Margin Method (TNMM) as the most appropriate method (MAM) - HELD THAT:- We find that there is no change in the nature of activity carried on by the assessee since A.Y. 2011-12 till the previous year relevant to the A.Y. before us. The modification of the agreements appears to be relating to the terms and conditions of payment. Assessee submitted that there is no change whatsoever with regard to transactions of the assessee with the A.E. and the transactions of the AE with other unrelated parties. If that is so, then, the CUP method has to be adopted. We deem it fit and proper to set aside the assessment order and direct the AO to refer the matter to the TPO with a direction to adopt CUP method if the nature of activity between the assessee and the A.E. and between the A.E. and the unrelated parties who are providing similar services to the A.E. is the same and if there is a difference in the nature of activity which would affect the determination of the ALP, then the TPO is free to examine and adopt the MAM in accordance with law after giving the ass a fair opportunity of hearing. Assessee's appeal is treated as allowed for statistical purposes.
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