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| The Tax Publishers2020 TaxPub(DT) 5225 (Hyd-Trib) INCOME TAX ACT, 1961
Section 92C
Where internal CUP had been applied consistently as the MAM to benchmark international transaction with AE and if nature of activity between assessee and AE and between AE and unrelated parties who were providing similar services to AE was the same, then CUP was to be adopted as the MAM. If there was a difference in the nature of activity which would affect determination of ALP, then TPO was free to examine and adopt the MAM in accordance with law after giving the fair opportunity of hearing.
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Transfer pricing - Determination of ALP - MAM - Internal CUP v. TNMM--Assessee pleading no change in the activities carried out as compared to earlier years
Assessee rendered IT-enabled services to its AE abroad and to benchmark said transactions, assessee adopted internal CUP as the MAM. TPO applied ('TNMM') as the most appropriate method for benchmarking said transaction. Assessee's case was that there was no change in the nature of activity carried on by assessee since assessment year 2011-12 till the previous year relevant to assessment year under consideration. Held: Matter was remanded to AO for verification. If nature of activity between assessee and AE and between AE and unrelated parties who were providing similar services to AE was the same, then CUP was to be adopted as the MAM. If there was a difference in the nature of activity which would affect determination of ALP, then TPO was free to examine and adopt the MAM in accordance with law after giving the fair opportunity of hearing.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2015-16
IN THE ITAT, HYDERABAD BENCH
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