TaxTMI 
TaxTMI 
2017 (5) TMI 70
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....ncluding subgrounds running to 5 pages. However, in the course of arguments, assessee has placed its arguments only on the following ground: "2.1.4. On the facts and in the circumstances of the case and in law, the Ld.AO/Ld.TPO erred and the Hon'ble DRP further erred in upholding/confirming the action of the Ld.AO/Ld.TPO in rejecting the Comparable Uncontrolled Price (CUP) (in spite of availability of internal CUP) method for ITES and thereby applied Transactional Net Margin Method (TNMM) as the most appropriate method for benchmarking the said transaction". 2. Briefly stated, assessee-company is engaged in the business of Medical Transcription and ITES. The Transfer Pricing Officer [TPO] has combined both the transactions and ado....
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....the ITAT. Therefore, objection of Ld.CIT-DR with reference to the order for AY. 2011-12 cannot be considered in the present proceedings. The only option, if at all the order is erroneous in the opinion of Revenue/ CIT(DR), is to appeal to the higher forum, but the contentions of the CIT-DR that the order in AY. 2010-11 is based on incorrect appreciation of facts, cannot be considered in these proceedings. That order has considered the submissions of both parties and compared the coordinate bench decision in another case and directed the TPO/AO to adopt CUP method for transcription business. 5.1. Since the Co-ordinate Bench has already come to a conclusion on the issue agitated by assessee, respectfully following the same, we direct the A....
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....ical transcription services and Co-ordinate Bench in the above said case of ACIT Vs. M/s. Ckar Systems (P) Ltd., has upheld the Ld.CIT(A)'s order that CUP method is the most appropriate method for computing ALP for the international transactions entered into by assessee with its AE in that case. Since the facts are similar, we are of the opinion that TPO should have adopted CUP method only for analysing the assessee's International transactions. Accordingly, we uphold assessee's objections with reference to the adoption of method and direct the AO/TPO to adopt CUP method for the medical transcription services and TNMM for the software development services. AO/TPO is directed to re-do the exercise afresh giving due opportunity to assessee an....
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.... being carried out. a • CUP suffers from the defect that the price per line has been determined using single USD rate and is not per invoice or at the actual time of receipt of payment. • In case of comparables the AE is remunerating on the number of lines transcribed at a fixed agreed rate and if the same analogy is taken to the taxpayer the cost per line in every invoice will work out differently taking the rate of USD at that point of time. • Comparables are services - Rate charged per line of transcription Is dependent on the size of the transcription and the sophistication of the transcription work. revenue - In the abse....
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....AE to other third entities in India. (Source: Para 7, ITA No. 565/Hyd/2011) ITAT's adjudication CIT(A) has passed a well-reasoned order, elaborately discussing the various issues raised by the TPO and ultimately came to α conclusion that the CUP method is the most appropriate method for computing the ALP for the international transactions entered into by the Appellant with its AE. We fully agree with the order of the CIT(A) in this behalf. We accordingly uphold the same and reject the ground of the revenue on this issue. Document 3 Appellant's contentions/submissions (Source: Para 11, ITA No. 565/Hyd/2011) The nature of transaction was similar, i.....