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2021 (10) TMI 831 - AT - Income TaxTP Adjustment - Selection of MAM - CUP v/s TNMM - most appropriate method for determining the arm’s-length price of the export of rice made by the assessee - Assessee has adopted CUP as the most appropriate method, whereas the learned transfer pricing officer and DRP has held that transactional net margin method is the most appropriate method - HELD THAT:- We find that this issue is squarely covered in favour of the assessee by the decision of the coordinate bench in assessee’s own case [2014 (3) TMI 63 - ITAT DELHI] thus we hold that CUP method is the most appropriate method for benchmarking the international transactions of the assessee. Accordingly on this issue we reverse the orders of the learned transfer pricing officer as well as the direction of the learned dispute resolution panel. Accordingly, ground numbers 2 – 4 of the appeal are allowed. Benefit of set of where the assessee is has transacted at a price lower than and arm’s-length price - HELD THAT:- As we have upheld that the cup method is the most appropriate method for determination of the arm’s-length price, and the whole issue set-aside to the file of the learned assessing officer, the assessee may raise this issue before the learned transfer pricing officer at the time of three determination of the arm’s-length price. Therefore this ground of appeal is also set-aside to the file of the learned assessing officer/transfer pricing officer where the assessee is at liberty to raise the above issue. The learned transfer pricing officer may examine the claim of the assessee after giving a proper opportunity of hearing. In the result additional ground raised by the assessee is allowed for statistical purposes.
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