INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Re-sale of imported goods without any value addition - MAM--RPM V. TNMM

Assessee imported surveying instruments from AE abroad for re-sale without any value addition to third party in India. TO benchmark said transaction assessee adopted RPM as the MAM. However, TPO applied TNMM and thus suggested ALP adjustment.Held: Assessee purchased goods from AE and acted as the full fledged distributor and goods purchased from AE had been sold to unrelated parties without any value addition and, therefore, RPM was the MAM for determination of ALP.