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TMI Blog2022 (2) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... related party and an uncontrolled transactions with unrelated parties will result into more appropriate bench marking of arm s length price. Under the circumstances, if there is availability of sufficient data of internal comparables, the Ld.TPO first should have recourse to such internal compares before moving on to external comparables. Only on insufficiency of data in respect of internal comparables, support must be drawn from the external comparables. We therefore, direct the Ld.TPO to carry out detailed analysis of the international transactions using TNMM as MAM, based on the materials filed by assessee related to internal comparables. In the event the details filed are satisfactory, the determination must be confined to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the segmental results of international transactions, submitted before the DRP, even though the segmental results for obtaining the operating profitability was derived in a scientific manner and certified by an independent Chartered Accountant. 3. The Learned TPO and Hon'ble DRP erred in law and on facts by not considering the Internal TNMM, as submitted by your appellant before the DRP. 4. The Learned TPO and Hon'ble DRP has erred in law and on facts in holding that transfer pricing adjustment be made at the entity level including on sales made to Non-AE parties 5. Selection of wrong comparables a.The learned TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture was not linked with the manufacturing activity and same principles have not been applied in computing PLI of comparables. 8. The Learned TPO and Hon'ble DRP has erred in law and on facts in considering the Liability written back amounting to Rs.2,74,675/- as a non-operating income. 9. Corporate Guarantee Commission a)The learned TPO and Hon'ble DRP has erred in law and on facts in holding that corporate guarantee given to a third party for raising funds by Associated Enterprises in the normal course of business is an international transaction within the meaning of Section 92B of Income-tax Act, 1961. b)The Learned TPO and Hon'ble DRP has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O, the internal comparables submitted by assessee may be considered in order to bench mark the international transaction for the years under consideration. She submitted that all the details are available in order to assist the revenue authorities to use the internal comparables. 3.2 In support of her submission, she placed reliance on the decision of Hon ble Special Bench, Mumbai in case of Tecnimont ICB (P.) Ltd. vs. Addl. CIT reported in [2012] 24 taxmann.com 28 (Mum.) (TM). Referring to the said decision, she submitted that when the data is available showing the profit margin of that enterprise itself from third parties, it is always safe and advisable to have recourse to such internal comparable case. The reason is patent that the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld.TPO to carry out detailed analysis of the international transactions using TNMM as MAM, based on the materials filed by assessee related to internal comparables. In the event the details filed are satisfactory, the determination must be confined to the internal comparables so filed by assessee. In the event, the details filed by assessee is not verifiable or not in accordance with law, the Ld.AO/TPO is open to carry out analysis in accordance with law. Ground nos. 2-4 raised by assessee stands allowed for statistical purposes. Ground nos. 5-10 becomes academic at this juncture as the entire assessment in respect of transfer pricing adjustment has been remanded to the Ld.AO/TPO for de novo consideration based on the directi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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