TaxTMI 
TaxTMI 
2021 (1) TMI 1130
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....Miscellaneous Application has been moved by the assessee requesting to elaborate the direction given in the order passed by the Tribunal in ITA No.1260/PUN/2018 on 27-02-2019. The ld. AR submitted that the Tribunal has restored the issue of determination of the Arm's Length Price (ALP) of the international transaction of payment of Management Fees to the AO/TPO with a direction to select the corre....
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.... restored the matter vide para 34 of its order u/s.254(1) by directing the AO/TPO to first determine the most appropriate method and then find out the ALP of the international transaction. The assessee applied the TNMM with its foreign AE as a tested party and also by adopting the aggregate approach. The Tribunal did not approve the selection of foreign AE as a tested party for the reasons given i....
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....r CPM and not their selection. The Tribunal has assigned reasons as to how these methods were wrongly applied. 4. At this juncture, we want to underscore that there are two things relevant in ALP determination qua the most appropriate method viz., first, selection of the method and second, its application. What has been faulted with in the impugned order is the wrong application of the methods an....
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....'t mean ruling out the selection of that Method as well. If the wrong application of a method is corrected, there can be no impediment in its selection. To put it simply, it is still open in the fresh proceedings to choose the assessee as a tested party and benchmark the transaction on segregate basis and apply the TNMM; or to find out a suitable comparable uncontrolled transaction and apply the C....