The Tax Publishers2021 TaxPub(DT) 0806 (Mum-Trib)

INCOME TAX ACT, 1961

Section 92C

While considering the various discrepancies as well as infirmities in the approach adopted by both TPO and assessee, it was appropriate that a fresh transfer pricing study be undertaken for selecting proper comparables after careful study of functional profile of the assessee so as to arrive at proper TP adjustment.

Transfer pricing - Computation of ALP - Selection of comparables under TNMM Method -

Assessee filed appeal against addition made on account of transfer pricing adjustment on the ground applicability of TNMM at entity level for computing the margin and against selection of comparables by the TPO. Held: As decided in assessee's own case [2013 TaxPub(DT) 2282 (Mum-Trib)] [2013 TaxPub(DT) 2282 (Mum-Trib)] and considering the various discrepancies as well as infirmities in the approach adopted by both the parties, it was appropriate that a fresh transfer pricing study be undertaken for selecting proper comparables after careful study of functional profile of the assessee so as to arrive at proper TP adjustment.

Followed:TCL Holdings (P.) Ltd. v. Asstt. CIT 2013 TaxPub(DT) 2282 (Mum-Trib).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2008-09



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