Resale method vs other method - assessee making defence equipment supplies and maintenance - TP additions based on external comparables applying TBMM thereto.

Facts:

Assessee was the AE of a Russian entity which was formed under sovereign powers of Russian President and was supplying defence equipment and servicing the same to Indian navy. They benchmarked their international transactions on resale price method citing that the pricing was controlled by both governments and they had very little say except being a limited distributor. TPO took market comparables and made additions applying TNMM method. On appeal to DRP also also resiled the resale method citing that the other method should have been the appropriate method as an alternative. DRP upheld part of the additions. On higher appeal -

Held in favour of the assessee that the resale method was the right method or the other method. Case was remanded to TPO to find comparables if any existing appropriately and the recompute ALP.

Case: Rosoboronservice (India) Ltd. v. Dy. CIT 2023 TaxPub(DT) 6386 (Mum-Trib)