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| The Tax Publishers2020 TaxPub(DT) 3017 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Assessee had been following the CUP method for benchmarking international transactions which is an accepted industry norm in the year under consideration and the same method was also followed by it in earlier years. Further, Tribunal while deciding assessee's appeal for assessment year 2006-07 & 2007-08 had on identical facts decided the issue in assessee's favour and appeal against the order of ITAT was dismissed by High Court and therefore, CUP method was to be considered as the MAM.
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Transfer pricing - Determination of ALP - MAM - CUP v. TNMM--Adoption of CUP in preceding years upheld by High Court--Decision of High Court not stayed/overruled
Assessee rendered freight forwarding services to its AE abroad and adopted CUP method as the MAM for benchmarking of said transaction. TPO adopted TNMM method and accordingly suggested TP adjustment. Held: Assessee had been following the CUP method for benchmarking international transactions which is an accepted industry norm in the year under consideration and the same method was also followed by it in earlier years. Tribunal while deciding assessee's appeal for assessment years 2006-07 and 2007-08 had on identical facts decided the issue in assessee's favour. Against the order of the Tribunal for those years revenue had carried the matter before High Court and High Court dismissed the appeals of revenue. Decision of High Court had not been stayed/overruled/set aside by higher judicial forum. Considering the totality of the aforesaid facts, CUP method was to be considered as the MAM.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 & 2011-12
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