2021 (4) TMI 64

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....ansactions relating to the manufacturing segment based on erroneous reasons and instead, applying Net Profit based approach by selecting Transactional Net Margin Method (TNMM) as the most appropriate method. 3. The Ld. TPO, Ld. AO and Hon'ble DRP erred on facts and in law in indentifying Blue Star Limited as comparable to the Appellant disregarding the fact that the same was inappropriate comparable owing to differences in FAR profile ('Function performed, Assets utilized and Risk assumed'). which remained undecided in the order dated 22.11.2018 passed by the coordinate Bench of the Tribunal and subsequently Tribunal vide order dated 29.06.2020 passed in MA No.425/Del/2019 has ordered to decide afresh grounds no.2 & 3 qua the "M....

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....adjustment of Rs. 16,04,47,763/-. 5. The taxpayer carried the matter before the ld. DRP by way of filing the objections who confirmed the TNMM adopted by the TPO by partly accepting the objections and confirmed the adjustment made by the TPO to the extent of Rs. 15,51,55,954/- as against adjustment of Rs. 16,04,47,763/-. 6. Now, the appeal before the Tribunal is for limited purpose for adjudicating the issue as to whether "other method" applied by the taxpayer to benchmark its international transactions is the MAM as against TNMM applied by the TPO/ld.DRP. 7. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the Revenue authorities below in the....

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....(1) TMI 976-ITAT Delhi dealt with the identical issue as to applying "the rule of consistency" while applying the MAM for benchmarking the international transactions when there is no change in the business model of the taxpayer. 11. When undisputedly there is no change in the business model of the taxpayer during the year under consideration and in the succeeding assessments years i.e. 2014-15 to 2017-18, in which TPO/DRP have accepted "the other method" applied by the taxpayer to benchmark the international transactions qua its manufacturing operation, the rule of consistency has to be followed by the Revenue Authorities, otherwise it will lead to multiplicity of the litigation at different forums and will also lead to the uncertainty i....