Transfer Pricing Adjustments - Selection of the most appropriate...

Transfer Pricing Adjustments - Selection of the most appropriate method (MAM) for determining the arm's length price (ALP) - The assessee's choice to adopt the 'other method' (average of Sales Comparable Method and Discounted Cash Flow Method) as the MAM is defended by the tribunal. It is seen as appropriate because it accounts for what the transaction price 'would have been' under comparable uncontrolled conditions, addressing the lack of directly comparable uncontrolled transactions in the real estate sector. - The tribunal criticizes the lower authority's rejection of the Sales Comparable Method and the application of circle rates for valuation. It argues that real estate transactions should be valued based on specific parameters relevant to the parties and the property, rather than generic circle rates, indicating a preference for a more nuanced and detailed valuation approach that reflects the property's unique attributes.