TaxTMI 
TaxTMI 
2022 (8) TMI 946
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....A.Y. 2011-12: "1. On the facts and in the circumstances of the case and in law, the Ld.CIT (A) erred in holding that the Resale Price Method (RPM) was the most appropriate method for determining the arm's length price of the assessee's international transaction in respect of purchase and sale of online advertisement space ignoring the fact and the legal principle that as per Rule 10B(1)(b)(i), RPM can be used for determining the arm's length price of the assessee's international transactions in respect of only purchases from AE whereas the assessee has sale transaction also with its AE. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in holding that the Resale Price Method (RPM) wa....
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....hat assessee is a company engaged in the business of resale of online advertisement space. It filed its return of income on 21st November, 2011 at a loss of Rs. 11,25,89,061/-. The case of the assessee was selected for scrutiny. As assessee has entered into international transaction, the matter was referred to Dy. Commissioner of Income Tax, Transfer Pricing Officer 1(3)(1), Mumbai (the learned Assessing Officer) for examination of the arm's length price of same. The learned Transfer Pricing Officer made an adjustment to the arm's length price of international transaction of purchase and sale of online advertisement space by Rs. 77,18,471/-. Fact shows that the assessee has entered into the transaction with its associate enterprises in US f....
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....nsfer Pricing Officer to adopt resale price method as the most appropriate method. The total addition was deleted. Therefore, the learned Assessing Officer aggrieved and preferred this appeal. 07. The learned Departmental Representative vehemently supported the order of the learned Transfer Pricing Officer and submitted that more than distribution functions; the assessee is providing value added services in its international transactions. Therefore, resale price method cannot be taken as most appropriate method. She submitted that in such circumstances only Transactional Net Margin Method should be adopted. Therefore, she submitted that the order of the learned CIT(A) suffers from infirmity. 08. Despite notice to the assessee, none appear....