TMI Blog2015 (12) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... the grievance of the revenue as formulated in the proposed question. The respondentassessee has not challenged the application of TNMM and arriving at the margin of 4.79% arrived at by the TPO to determine ALP. The grievance of the respondentassessee before the Tribunal is only with the margin of 4.79% being applied in respect of all it's sales and not restricted to the international transactions entered into by the respondentassessee with it's AEs. It is evident from the provisions of Chapter X of the Act that the adjustment which has to be done to arrive at ALP is only in respect of the transaction with it's AEs. Thus no fault can be found with the order of the Tribunal. Revenue is unable to point out how the aforesaid finding of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Along with it's return, the respondentassessee had disclosed the international transactions entered in respect of it's sales/exports to it's Associated Enterprises (AE) determining it's Arm's Length Price (ALP) in respect of transactions with AE's by using Cost Plus Method. The Transfer Pricing Officer (TPO) rejected the same and applied the Transaction Net Margin Method (TNMM). On application of TNMM, the TPO arrived at the rate of 4.79% being the margin by which the transaction value would have to be enhanced to determine the ALP. However the TPO while applying the margin of 4.79% applied the same in respect of the universe of sales of respondentassessee i.e. both to AE's and nonAE's sales. Thus leading to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t seems to arise from the impugned order of the Tribunal nor is the method of determination of ALP on application of TNMM arriving at the margin of 4.79% is disputed before Tribunal or before us. We are unable to understand the grievance of the revenue as formulated in the proposed question. The respondentassessee has not challenged the application of TNMM and arriving at the margin of 4.79% arrived at by the TPO to determine ALP. The grievance of the respondentassessee before the Tribunal is only with the margin of 4.79% being applied in respect of all it's sales and not restricted to the international transactions entered into by the respondentassessee with it's AEs. It is evident from the provisions of Chapter X of the Act that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
