Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1185 - ITAT MUMBAITP Adjustment - selection of MAM - TNMM or CUP - HELD THAT:- We concur with DRP to hold that comparable transactions with AEs cannot be adopted for benchmarking international transaction using CUP Method as the same do not qualify as uncontrolled transactions. No infirmity in rejecting CUP Method and adoption of TNMM as the most appropriate method for benchmarking international transaction in the facts of the present case. To this extent Ground 1.1 raised in the Appeal is treated as partly allowed. Comparable selection - exclusion of the First Comparable (i.e. Asia Business Exhibition & Conferences Ltd.).on account of high turnover - HELD THAT:- In the present case, no turnover filter has been applied by the TPO or the Appellant while selecting the comparables and therefore, the judgment of Acusis Software India (P) Ltd. [2018 (8) TMI 1885 - KARNATAKA HIGH COURT ] does not apply to the facts of the present case. We also note that it is not the case of the Appellant that First Comparable is functionally dissimilar to the Appellant. We do not find any merit in the contentions raised on behalf of Appellant for exclusion of the First Comparable (i.e. Asia Business Exhibition & Conferences Ltd.). Accordingly, Ground No. 1.2(b) raised by the Appellant is rejected. Exclusion of Second Comparable [Messe Duesseldorf India Pvt. Ltd.] - There is nothing placed on record by the Appellant to controvert the concurrent factual findings returned by the TPO and the DRP to the effect that proper information/material about Second Comparable was available. Therefore, we do not find any reason to interfere with the exclusion of Second Comparable from the list of comparables. Computing ALP of the international transaction the TPO had applied PLI at entity level and not with reference to international transaction - In view of the above judgment of the Hon‟ble Bombay High Court in the case of Ratilal Becharlal & Sons [2015 (11) TMI 1524 - BOMBAY HIGH COURT] and the observations of DRP, we direct the Assessing Officer to compute transfer pricing adjustment in respect of international transactions with AE. Accordingly, Ground No. 1.3 raised by the Appellant is allowed.
|