https://www.taxtmi.com/caselaws?id=760684 Delhi HC upheld the Tribunal's decision favoring the assessee in a transfer pricing dispute. The TPO rejected TNMM with Berry ratio method without sufficient justification, despite its consistent use in prior six assessment years (2009-10 to 2014-15). The court held that absent statutory changes, assessment methods should remain consistent to avoid commercial uncertainty. The TPO's adoption of residual method under Rule 10B(1)(f) was improper as other methods weren't properly evaluated. Additionally, the TPO's comparables were inappropriate - including non-compete arrangements and educational services transactions that weren't similar to the hardware purchase transactions being benchmarked. The assessee's benchmarking study showed international transactions were at arm's length price. en-us Mon, 14 Oct 2024 00:00:00 +0530 Fri, 25 Oct 2024 08:10:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760684 Delhi HC upheld the Tribunal's decision favoring the assessee in a transfer pricing dispute. The TPO rejected TNMM with Berry ratio method without sufficient justification, despite its consistent use in prior six assessment years (2009-10 to 2014-15). The court held that absent statutory changes, assessment methods should remain consistent to avoid commercial uncertainty. The TPO's adoption of residual method under Rule 10B(1)(f) was improper as other methods weren't properly evaluated. Additionally, the TPO's comparables were inappropriate - including non-compete arrangements and educational services transactions that weren't similar to the hardware purchase transactions being benchmarked. The assessee's benchmarking study showed international transactions were at arm's length price. Case-Laws Income Tax Mon, 14 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760684