9911796707
TMI Blog2020 (2) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... alia that:- "1. In law and on facts and circumstances of the case, Ld Commissioner of Income Tax (A) (Ld. CIT (A)) has erred in making an addition of Rs. 1,66,27,826/- to the total income of the appellant on account of adjustment in the Arm's Length Price (ALP) of the international transactions. 2. In law and on facts and circumstances of the case, Ld. CIT(A) erred in disregarding Resale Price Method (RPM) and Cost Plus Method (CPM) as the most appropriate method and arbitrarily applying Transactional Net Margin Method (TNMM) as the most appropriate method for determining arm's length price (ALP) of international transactions of outbound travel related services and inbound travel related services pertaining to the following rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to internal comparable over external comparables. Ld CIT (A) ought to have given preference to internal comparables after itself acknowledging the fact that in the case of Appellant Internal comparables are available. 4. Without prejudice to the above, in law and on facts and circumstances of the case, Ld. CIT (A) erred in affording reasonable opportunity to the Appellant for furnishing segmental profitability for outbound and inbound services at the operating profitability level for determining ALP of Inbound and outbound travel related services and passed the order merely on the presumption that segment profitability could not be determined at the operating profit level. 5. Without prejudice to the above, in law and on facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , site scene tours, travel insurance and customize packages. Outbound services comprise of meetings, conventions and exhibitions and travel to various destinations of the world. During the year under assessment, the taxpayer entered into international transactions as reported in Form No.3CEB with its Associated Enterprises (AE) as under :- S. No. Description of transaction Method Value (in Rs.) 1 Outbound Travel Related Services RPM 23,42,55,679 2 Inbound Travel Related Services CPM 2,91,53,914 3 Charged Back of Expenses by Assessee - 75,64,684 4 Charged Back of Expenses to assessee (excluding transactions of receipt of management services) - 14,89,349 5 Payment of management fees - 27,74,63,626 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case. 7. At the very outset, ld. AR for the taxpayer contended that the issue as to applying the method of benchmarking the international transactions is covered against the taxpayer by the order passed by the coordinate Bench of the Tribunal in taxpayer's own case for AY 2007-08 passed in ITA No.1635/Del/2013 order dated 31.07.2014 whereby internal TNMM has been upheld to benchmark the international transactions and the Tribunal also upheld the segmental accounts which were prepared using sales as the basis for allocation of common expenses and similarly TNMM has been upheld by the Tribunal in taxpayer's own case for AY 2006-07 also decided in ITA No.5534/Del/2010 order dated 08.07.2011 but due to non-availa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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