TMI Blog2022 (3) TMI 1460X X X X Extracts X X X X X X X X Extracts X X X X ..... r considered view, since, there is no transaction of management service in the assessment year under consideration i.e Assessment Year 2017-18 unlike in the other Assessment Years, we hold that in the assessment year under consideration RPM is the MAM and the same has to be applied. Accordingly the said ground urged by the Assessee deserves to be allowed. Since we have agreed with application of RPM method as MAM to determine the ALP of the international transaction for AY in consideration, we remit all other grounds raised before us to the file of AO/TPO for fresh consideration after giving opportunity to the Assessee. - I.T.A. No. 1560/DEL/2021 - - - Dated:- 15-3-2022 - SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER Appellant by Sh. K. M. Gupta, Adv, Ms. Shruti Khimta Sh. Saloni Shital, AR Respondent by Sh. Surender Pal, CIT (DR) ORDER PER YOGESH KUMAR US, JM This appeal is filed by the assessee for Assessment Year 2017-18 against the order dated 29/09/2021 u/s 143(3) r/w Section 144C of Income tax Act, 1961, passed by DCIT, New Delhi. 2. The grounds of appeal are as under:- 2.1 erroneously rejected the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al transaction related to purchase of trading goods remained as Rs. 7,51,50,946/-. Accordingly, the original adjustment of Rs. 7,51,50,946/- made u/s 92CA of the Act is remained to Rs.7,51,50,946/- consequent to the directions of the Hon ble DRP-1, New Delhi. 6. During the year under consideration, the assessee has made following international transactions:- No Nature of transaction Method used Value of transaction 1 Purchase of trading goods RPM 2,293,224,413 2 Cost Allocations paid Other Method 15,380,265 3 Cost Allocations received Other Method 27,382,731 4 Reimbursement of expenses to AEs Other Method 6,400,658 5 Reimbursement of expenses from AEs Other Method 9,314,375 7. The assessee has used resale price method to bench mark, the above said transaction by ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1 functional analysis) submitted by the assessee, during FY 2016- 17, GROHE India had paid INR 15,380,265 to its AE on account of cost allocation pertaining to Information technology and central marketing expenses. Thus the assessee has apart from purchase of traded goods has also availed information technology and central marketing services from its AE, In the preceding year i.e. Assessment Year 2016-17, the assessee has himself applied TNMM method for determination of ALP of the International transactions. As the FAR remains the same, TNMM is the most appropriate method which has been applied by the Ld. TPO. 9. Subsequent to the DRP directions, the assessment order has been passed u/s 143(3) of the IT Act by assessing the total income of the assessee at Rs. 13,16,71,315/- as against the declared income of Rs. 5,15,66,780/-. 10. Aggrieved by the assessment order dated 29/09/2021, the assessee filed the appeal urging the grounds mentioned above. 11. Ground No. 2.1 is in respect of most appropriate method applicable to the assessee in bench marking international transaction for the Assessment Year 2017-18 since the said ground goes into the root of the matter, we have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection for RPM as MAM for the purchase for trading of goods. The observation of the DRP/TPO that the assessee had itself applied TNMM in the AY 2016-17 is devoid of any merit to hold that the TNMM is MAM for the year under consideration for purchase of trading goods. 16. The assessee has relied upon the Order of the Tribunal reported in Mattel Toys (I) (P.) Ltd. Vs DCIT ([2013] 34 taxmann.com 203 (Mumbai - Trib.), wherein it is held as follows. wherein the coordinate bench has approved the position of the law that under the law there is no bar that the assessee cannot deviate from the method applied in own TP study for the year under consideration, if the facts of case warrants the adoption of the other methods for determination of the ALP of the international transactions in the following words: 41. Now coming to the argument of the learned Departmental Representative that once the assessee itself has chosen TNMM as most appropriate method in TPR, then it cannot resort to change its method at an assessment or appellate stage. In our opinion, such a contention cannot be upheld because if it is found on the facts of the case that a particular method will not result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee adopted aggregation approach for purchase of trading goods and receipt of the Management services, the benchmarking was rejected by the Ld. TPO in its orders by placing the reliance on the various decisions, wherein it has been held that law statutorily required determination of ALP of the international transactions by following transaction by transaction approach. 19. Per contra, Ld. DR by relying on the order of TPO, DRP and AO submitted that, the assessee has to follow the principle of consistency. The assessee cannot change the MAM for benchmarking international transaction. Further, relying on the Order of this Tribunal in the case of Carraro India Ltd. Vs. DCIT (2008-TIOL-519-ITAT-Del), M/s DHL Express (India) Pvt. Ltd. Vs. DCIT Circle 4 (1), New Delhi, and in the case of M/s Li Fung (India) Pvt. Ltd. Vs. DCIT Circle 4(1), New Delhi in ITA No. 5156/Del/2010, he contended that there is no res-judicata in the income tax proceedings and each assessment year is a separate unit and what is decided in one year shall not ipso facto apply in subsequent /earlier years and the Rule of consistency cannot be applied forever and the facts were not considered /discussed in ea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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