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2023 (9) TMI 96 - ITAT PUNETP Adjustment - ALP determination - Comparable selection - assessee has applied TNMM Method to benchmark the transactions - TPO held that the main activity of the assessee is marketing activity and assessee is getting remunerated for marketing functions with a fixed mark-up - HELD THAT:- Respectfully following the decision of ITAT Pune [2023 (1) TMI 1076 - ITAT PUNE], we uphold the order of the TPO qua nature of the activity. We hereby hold that assessee’s main activity is marketing activity. Therefore, comparable engaged in Distribution Activity, as selected by the assessee in TPSR, are not comparable to the functions performed by the assessee. Accordingly, Ground No's.1 to 3 raised by the Revenue are Allowed. CIT(A)’s decision that Dynacons Technologies, Integra Telecommunications and JMD Telefilms are comparables to assessee - As observed that the ld.CIT(A) has not adjudicated the issue of comparability of these comparable on merits. Therefore, the said issue is set-aside to the file of ld.CIT(A) for denovo adjudication. The ld.CIT(A) shall give opportunity to the Assessee and Revenue. Accordingly, Ground No.4 is allowed for statistical purpose.
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