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TMI Blog2022 (12) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ai, dated 30.09.2019, for the AY 2002-03. Since, facts are identical and issues are common, for the sake of convenience, appeals filed by the assessee are being heard and disposed off by this consolidated order. 2. The assessee has, more or less, raised common grounds of appeal for both the assessment years and the solitary issue that needs to be decided from the grounds of appeal filed by the assessee is transfer pricing adjustment made towards international transactions of the assessee with its associated enterprises (in short "AEs"). Therefore, we deem it not appropriate to reproduce various grounds raised by the assessee for the sake of brevity. 3. The brief facts of the case are that M/s.Madura Coats Pvt. Ltd., is engaged in the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .144C of the Act, and made upward adjustment of Rs.50,35,211 to total income. The assessee has filed objection before the DRP-2, Bangalore, and challenged upward adjustment suggested by the TPO on various grounds including rejection of TNMM method and adoption of CUP method as most appropriate method. The sum and substance of arguments of the assessee before the DRP was that when the TPO has accepted 99.95% of the transaction pertaining to export of threads, erred in applying CUP method for 0.05% of transactions with its AEs. The DRP rejected the arguments of the assessee and sustained addition made towards TP adjustment by holding that an identical issue has been considered for the AY 2009-10 by the ITAT, where the assessee had undertaken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the fact that the TPO has accepted 99.95% transaction with AEs under TNMM method. The Ld.AR for the assessee further referring to the decision of ITAT Pune Bench, in the case of Amphenol Interconnect India Pvt. Ltd. v. DCIT in ITA No.1486/PN/2019 argued that the Tribunal held that when the TPO has accepted 90% of transactions under TNMM method is erred in applying CUP method for remaining 10% transactions by cherry picking few transactions out of total transactions of the assessee with its AEs. The Ld.AR for the further assessee submitted that the Hon'ble Bombay High Court in the case of PCIT v. Amphenol Interconnect India (P.) Ltd., reportedin [2018] 91 taxmann.com 441 (Bombay), has upheld the decision of ITAT Pune Bench and held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of management service fee and import of machinery etc. The assessee has aggregated all transactions and applied TNMM as most appropriate method and considered to be a tested party. The TPO has accepted TNMM as most appropriate method in respect of all transactions including export of threads to AEs to the extent of 99.95% transactions ofexport of threads. However, in respect of 0.05% of transactions pertains to export of threads, he has applied CUP method by cherry picking few transactions and made TPO adjustment of Rs.50,35,211/-. The TPO has never disputed TNMM method adopted by the assessee and has accepted the fact that the TNMM as most appropriate method in respect of 100% of transactions, except few transactions of export of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwhelming majority of exports to AEs, then there is no reason why for the balance of exports of goods, TNMM method should be not be applied. In this case, the TPO has accepted 99.95% of export of threads to AEs under TNMM method, but he had cherry picked 0.05% of transactions and applied CUP method without there being any valid reason. Therefore, we are of the considered view that the TPO is erred in adopting CUP method for few transactions when he has accepted overwhelming majority of transactions under TNMM method. The DRP without appreciating the above facts, simply sustained TP adjustment suggested by the TPO. Hence, we direct the AO/TPO to delete TP adjustment made towards few transactions by adopting CUP as most appropriate method. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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