https://www.taxtmi.com/caselaws?id=334184 An international transaction benchmarked under TNMM cannot be subjected again to a separate profit attribution exercise on the same footing. The ITAT Delhi held that the Assessing Officer's approach of first allocating 50% of the gross profit from head office sales to the Indian branch and then making a further arm's length adjustment was unsustainable when the assessee had already applied TNMM and the functions, assets and risks remained materially unchanged. The Tribunal also accepted the reliance on comparable margins and found no infirmity in the chosen benchmarking method. The restricted adjustment upheld by the CIT(A) was therefore sustained, and the Revenue's challenge failed. en-us Mon, 12 Sep 2016 00:00:00 +0530 Sat, 05 Nov 2016 07:20:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=334184 An international transaction benchmarked under TNMM cannot be subjected again to a separate profit attribution exercise on the same footing. The ITAT Delhi held that the Assessing Officer's approach of first allocating 50% of the gross profit from head office sales to the Indian branch and then making a further arm's length adjustment was unsustainable when the assessee had already applied TNMM and the functions, assets and risks remained materially unchanged. The Tribunal also accepted the reliance on comparable margins and found no infirmity in the chosen benchmarking method. The restricted adjustment upheld by the CIT(A) was therefore sustained, and the Revenue's challenge failed. Case-Laws Income Tax Mon, 12 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=334184