2021 (2) TMI 1321

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....he Respondent : Shri Chandra Vijay (DR) ORDER This is an appeal by the assessee against the final assessment order dated 30-01-2017 passed under section 143(3) r.w.s. 144C(13) of the Income-tax Act, 1961 for the assessment year 2012-13, in pursuance to the directions of learned Dispute Resolution Panel (DRP), Mumbai. 2. Registry has pointed out a delay of 121 days in filing the appeal. Th....

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....nal net margin method (TNMM) as adopted by the assessee as against external TNMM selected by the Transfer Pricing Officer (TPO). In this context, he drew our attention to ground 3(v). He submitted, in case this issue is decided in favour of the assessee all other grounds raised by the assessee would become academic. Proceeding further, he submitted, the applicability of internal TNMM, as adopted b....

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....ated Enterprises (AE). For benchmarking the international transactions with the AEs, the assessee had aggregated all the transactions and applied internal TNMM to determine the ALP. Since, the profit margin of the assessee was within the average margin of the selected comparables (non-AE transactions), the assessee claimed the transaction with AE to be at arm's length. However, the TPO, on verifyi....

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....ear 2011-12, vide ITA No.5189/Mum/2015 dated 03-05-2017, has held that internal TNMM as adopted by the assessee is the most appropriate method to benchmark the transaction with the AE. Following the aforesaid decision, the Tribunal while deciding assessee's appeal for Assessment Year 2012-13 in IT(TP)ANo.51/Mum/2017 dated 26-11-2019 has reiterated that internal TNMM is the most appropriate method ....