TMI Blog2020 (8) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... from international transactions was at arm s length. As mentioned elsewhere, the facts of the years under consideration are identical to the facts considered by the co-ordinate bench and Hon'ble High Court in earlier A.Ys. Therefore, respectfully following the decision of the Hon'ble Punjab and Haryana High Court [ 2019 (12) TMI 1630 - PUNJAB AND HARYANA HIGH COURT] we decline to interfere with the findings of the ld. CIT(A). Accordingly, the grounds raised by the Revenue in both the A.Ys stand dismissed. - ITA No. 2277 & 2278/DEL/2017 - - - Dated:- 7-8-2020 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER For the Assessee : Shri Ved Jain, Adv For the Revenue : Shri M. Baranwal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f convenience, we are taking up the facts of Assessment Year 2011-12 and facts of Assessment Year 2012-13 are identical though quantum may differ. 5. During the F.Y. 2011-12 relevant to Assessment Year 2011-12, the international transactions undertaken by the assessee company are as under: S.no. International Transaction Value of Transaction (in INR) Most Appropriate Method selected by KB India 1 Purchase of raw materials consumables 478,386,449 Transactional Net Margin Method 2 Sale of finished goods 93,223,599 ( TNMM ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AEs 2,857,636 No Benchmarking required 16 Reimbursement of miscellaneous 19,046,418 TOTAL TRANSACTIONS 951,179,207 6. The TPO accepted the assessee company s selection of TNMM as the most appropriate method for determination of ALP for all the above international transactions except the following two items wherein he applied CUP as the most appropriate method: i) Availing of professional consultancy services; and ii) Availing of management support services. 7. The TPO made adjustments on account of management support services of Rs. 1,97, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts no addition has been made by the AO on this issue, and obviously none recommended by the TPO too. Thus to sum up, on identical facts, the appellant has got relief from the Hon ble ITAT for Asstt. Year 2008-09, and no adjustment has been made by the TPO and the AO on absolutely similar facts in Asstt. Year 2013-14. 16. Thus based on these facts and following the order of the Hon ble ITAT in the case of the appellant himself as reproduced above, I have no hesitation in deleting the addition and allowing Ground Nos. 2 to 11 of the appeal 10. Aggrieved by this, the Revenue is before us. 11. The ld. DR strongly supported the findings of the Assessing Officer/TPO. 12. Per contra, the ld. counsel for the assessee drew our a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction of Infra Group Services was not correct and permissible? 3.) Whether on the facts and in circumstances of the case and in law, the Hon ble ITAT was right in 4 of 6 7. It is the contention of Mr. Tajender Joshi, Ld. Counsel for the Revenue that the Tribunal had fallen in error in rejecting the Cup Method employed by the TPO and accepting the TNMM used by the assessee in its transfer pricing analysis. It was also argued that the ITAT has not passed the order as per the directions/ observations given by this Court in the order dated 06-11-2015. He relied on the observations made by this Court in above said order and contended that this court did not held that the CUP method applied by the TPO was wrong and TNM method w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instance where an independent entity had availed of services and had not paid any remuneration for the same. 10. In light of the above, the conclusion of the ITAT could not be faulted as the same was inconsonance with the provisions of the Act and the Rules. The contention of the Counsel for the revenue cannot be accepted as the Tribunal while upholding the TNMM Method has observed that the other methods prescribed under the Act namely the CUP or Cost Plus Method being not applicable in the facts and circumstances of the case, the Respondent Assessee could only resort to TNMM as the most appropriate method to show that its profit margin from international transactions was at arm s length. 11. Further, the Tribunal has concluded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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