Transfer pricing method consistency upheld as CUP remained the appropriate method over TNMM on identical facts.

The Tribunal's acceptance of the Comparable Uncontrolled Price (CUP) method as the most appropriate transfer pricing method was upheld because the assessee's earlier assessment years involved the same facts and CUP had consistently been accepted. The High Court noted that it had already concurred in the assessee's own case on the same methodology issue, and saw no basis to replace CUP with the Transactional Net Margin Method (TNMM) for the year under appeal. The Revenue's challenge to substituting TNMM therefore failed, and CUP remained the appropriate method for assessment year 2018-19.

---

---

Issues: Whether the Comparable Uncontrolled Price (CUP) method adopted by the assessee could be displaced in favour of the Transactional Net Margin Method (TNMM) for the assessment year 2018-19.

Analysis: The Tribunal had consistently accepted CUP as the most appropriate method in the assessee's earlier assessment years on similar facts. The Court noted that, in the assessee's own case, it had already concurred with the Tribunal on the same transfer pricing methodology issue. In view of the consistency of facts and the continued adoption of the same method, there was no occasion to substitute TNMM merely for the year under appeal.

Conclusion: The CUP method was rightly accepted as the most appropriate method, and the Revenue's challenge to its rejection of TNMM failed.

---