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TMI Blog2022 (7) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Mattel Toys (I) Pvt. Ltd. vs. DCIT in ITA No. 2476 & 2801/Mum/2008 without appreciating that the facts in the case of the assessee are entirely different from the one relied upon. He further states that the ITAT has erred in directing application of the Resale Price Method (RPM) as the Most Appropriate Method ('MAM') when the selection of the Most Appropriate Method was not under challenge before lower authorities, also when the assessee itself had applied the Trans Net Margin Method (TNMM) as the MAM in the TP Study. 3. Having perused the paper book, this Court finds that the authorities below have found that 95% of the business of the assessee involves trading activity. In fact, the function of the assessee during the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he correct legal principle. Thus, the use of one method in a transfer pricing report does not estop the assessee from later claiming that another method is the most appropriate one, provided that is indeed the correct position. [See: PCIT vs Matrix Cellular International Services Pvt. Ltd. [ITA 484/2017]. 6. In fact, this Court in Matrix Cellular International Services Pvt. Ltd. (supra) has upheld the finding of the Bombay Tribunal in Mattel Toys (I) Pvt. Ltd. vs. DCIT in ITA No. 2476 & 2801/Mum/2008, and observed as under:- "10. A similar view has been adopted by the Mumbai bench of the ITAT in Mattel Toys v. Deputy Commissioner of Income Tax, (2013) 158 TTJ (Mum)461: "Thus, the RPM method identifies the price at which the product pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the value of the product or the goods are further processed or incorporated into a more sophisticated product or when the product/service is transformed." 12. Therefore, a contrario, when the reseller does not add any value to the product of the goods, the RP method would be appropriate for determining the arms' length price. 13. Accordingly, we find that the ITAT committed no error in law in applying RPM as the Most Appropriate Method for computing the arms' length price. The Revenue's grievance is that the ITAT could not have applied RPM as the Most Appropriate Method, given that the assessee had itself, in its transfer pricing study report, and before the DRP, adopted the TNMM as the Most Appropriate Method to benchmark the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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