INCOME TAX ACT, 1961

Sections 260A & 92C

Appeal (High Court) - Maintainability - No substantial question of law - Tribunal considering fact on record upheld adoption of TNMM as against CUP method for benchmarking transaction of export of goods to AE

Assessee engaged in manufacturing of chemicals for its divergent industrial customers exported products to its AE and benchmarked the transaction using transactional net margin method. (TNMM). TPO considered comparable uncontrolled price (CUP) as the most appropriate method (MAM) and suggested ALP adjustment. Tribunal reversed this. Revenue challenged this by way of appeal before High Court. Held: Tribunal considering material on record had given finding of fact that TNMM method applied by assessee was the correct method and application of CUP method was not justified, in view of the fact that intra-AE transactions were fundamentally different in character in economic circumstances and contractual terms and these could not be compared with independent transactions entered into by assessee. Tribunal had taken into consideration voluminous documentary evidence on record for the purpose of coming to the conclusion of adoption of TNMM. Therefore, findings of fact recorded by Tribunal in the impugned order could not be termed as perverse or contrary to the evidence on record and no question of law much less any substantial question of law could be said to have arisen from the impugned order of Tribunal.

Relied:Makemy Trip India (P) Ltd. (2017) 399 ITR 297 (Del.).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08 & 2008-09

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