2015 (12) TMI 1130

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....or Respondent. P.C.: This appeal by the revenue under Section 260A of the Income Tax Act, 1961 (the 'Act') challenges the order dated 23 January 2013 passed by the Income Tax Appellate Tribunal (the 'Tribunal'). The Assessment Year involved is A.Y. 200607. 2. Although numerous questions were proposed by the revenue in the memo of appeal, at the hearing, Mr. Arvind Pinto, t....

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....nterprises (AE) determining it's Arm's Length Price (ALP) in respect of transactions with AE's by using Cost Plus Method. The Transfer Pricing Officer (TPO) rejected the same and applied the Transaction Net Margin Method (TNMM). On application of TNMM, the TPO arrived at the rate of 4.79% being the margin by which the transaction value would have to be enhanced to determine the ALP. Ho....

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....rgin of 4.79% computed by the TPO under the TMM across all it's sales and not restricted only to the international transactions entered into by it with it's AE. The Tribunal by the impugned order held that the entire exercise of determining the ALP is done in accordance with Chapter X of the Act and in particular to Section 92A and 92B of the Act require the transfer pricing adjustment to ....

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.... has not challenged the application of TNMM and arriving at the margin of 4.79% arrived at by the TPO to determine ALP. The grievance of the respondentassessee before the Tribunal is only with the margin of 4.79% being applied in respect of all it's sales and not restricted to the international transactions entered into by the respondentassessee with it's AEs. It is evident from the provis....