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2021 (4) TMI 756 - ITAT MUMBAITP Adjustment - MAM selection - adjustments to the total income of the Appellant under Section 92CA(3) of the Act on account of adjustment in the arm's length price of the international transaction, using Comparable Uncontrolled Price ('CUP') as the most appropriate method - rejecting the economic analysis undertaken by the Appellant using the Transactional Net Margin Method (TNMM), in accordance with the provisions of the Act read with the Income-tax Rules, 1962 ('the Rules'), and instead using CUP as the most appropriate method for the determination of the arm's length price of the international transaction of export of finished goods, without providing any cogent reason - HELD THAT:- Tribunal in assessee’s own case in[2020 (10) TMI 1240 - ITAT MUMBAI] wherein the identical issue has been restored to the file of the AO to decide the same after taking into account certain observations made by the Bench. Transfer Pricing Officer has adopted a very selective approach while applying CUP. Even, while applying CUP, the Transfer Pricing Officer has not properly looked into assessee's claim of various adjustments on account of geographical location, volume and timing difference. The Transfer Pricing Officer has only allowed volume adjustment on purely ad-hoc basis, that too, only in respect of a single product while ignoring various other products wherein volume difference between AE and non-AE transaction is substantial.assessee's contention that the price of products insofar as sales made to the AE and non-AE would vary due to timing difference has not been properly considered. The various adjustments which are required to be made have been demonstrated before us by the learned counsel for the assessee by furnishing charts. In our view, all these factors have to be taken into consideration, even, while applying CUP method. One more submission of the assessee is that the DRP has allowed adjustment on account of marketing/allied cost. However, while computing such adjustment, the Assessing Officer has not taken note of marketing personnel cost. Since the facts before us are materially same, We are, therefore, respectfully following the decision of the co-ordinate bench of the Tribunal restore this matter to the file of the AO to decide the same afresh . Adjustment on account of payment made towards intra group services in respect of marketing, administrative, logistic support and information technology services - HELD THAT:- As relying on own case [2020 (10) TMI 1240 - ITAT MUMBAI] inescapable conclusion would be that the adjustment made by the Transfer Pricing Officer to the arm's length price of payment made towards Intra-group services is unsustainable. In view of the aforesaid, we have no hesitation in deleting the addition made by the Assessing Officer on account of the aforesaid adjustment.
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