TaxTMI 
TaxTMI 
2017 (11) TMI 587
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.... 2. The assessee is in the travel and tourism business. It provides on-line solutions for travel product and other comprehensive services for the global traveller including air tickets, hotel reservations, car bookings and holidays. 3. For AY 2005-2006, the Transfer Pricing Report, filed by the assessee, was examined by the TPO, who felt that the adoption of the Resale Price Method (RPM) was appropriate in the circumstances. This finding and the consequent adjustments made were set aside by the CIT(A). The CIT(A) was influenced by the fact that the services provided in the two business segments, by the assessee, rendered them incomparable at the gross margin level. The CIT also held that on account of high degree of functional congruen....
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....repreneurial function in relation to the offshore business of the AEs, the assessee can be characterized as a routine back office service provider. Hence, the approach adopted by the assessee to benchmark such transactions using TNMM as the most appropriate method by finding comparables engaged in providing similar services holds merit. *** ***  ....
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....g (sub-agent) Rs.17.58 Rs.4.18 Rs.13.40 Ticketing (sub-agent) Gross Profit - Tours & Travels (sub-agent) Rs.1.11 Rs.0.29 Rs.0.82 MMT India' total gross profit on sub-agent business Rs.18.69 Rs.4.47 Rs.14.22 US costs attributed to India Net operating losses attributable to the appellant Rs.16.67 Rs.(2.45) On perusal of the above computation, the adjustment computed by the TPO has the effect of downward adjustment to the book value of international transactions of the assessee. In this regard, we find that we have already rejected the approach adopted by the TPO, the claim of the assessee on account of downward transfer pricing adjustment does not survive. Hence, in our view the....