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TMI Blog2016 (11) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... r For The Assessee : Mr. Raghunathan S For The Revenue : Smt. U. Mini Chandran, DR ORDER Per Smt. P. Madhavi Devi, J.M. Both are cross appeals for the A.Y 2011-12 against the order of the CIT (A)-5, Hyderabad, dated 29.03.2016. 2. Brief facts of the case are that the assessee company which is engaged in manufacture of engineering goods mainly transmission couplings, filed its return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s explanation with regard to these discrepancies. On 19.02.2014, the assessee filed details of internal CUP transactions with reference to sales and it was noticed that the data in the TP study was not relating to financial year 2010-11 but related to the subsequent period. With regard to the royalty payment also, the assessee has stated that the royalty was paid at 4% on export sale and 2.5% on d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e discrepancies. The CIT (A) agreed that the CUP is not the most appropriate method but, however, since the assessee itself has adopted the CUP as the most appropriate method in its TP study, he declined to change the method. However, he directed the exclusion of certain companies from the final list of comparables. Against this finding of the CIT (A) the Revenue is in appeal and in confirming the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the assessee that for adopting the CUP method, the highest degree of similarities have to be considered and as brought out by the learned Counsel for the assessee, there are varying conditions between the assessee and the comparables both in the products manufactured by them and also the market conditions. Therefore, we agree with the findings of the CIT (A) that the CUP is not the most ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the method adopted by it in its TP study. In view of the same, we are satisfied that the TNMM is the most appropriate method and therefore, we deem it fit and proper to set aside the orders of the authorities below and remand the issue of determination of the ALP to the file of the AO by adopting the TNMM as the most appropriate method. The other grounds are not pressed by the assessee and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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