2023 (9) TMI 1310

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....year 2015-16, under section 143(3) r.w.s. 144C of the Income Tax Act, 1961 (for short "the Act") assessee filed this appeal. 2. Two issues need adjudication in this appeal. One is determination of the most appropriate method to benchmark the international transaction in respect of IT enabled Services (ITeS) and other one is related to the Transfer Pricing adjustment in respect of the interest on trade receivables. Briefly stated relevant facts are that the assessee is into the business of providing computer-aided design and computer aided engineering solutions to automotive parts using commercially available software tools like Catia V5, Unigraphics, Hypermesh, Nastran etc. During the relevant assessment year the assessee provided engineer....

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.... most appropriate method. So also in respect of the interest on trade receivables, learned DRP directed the learned TPO to adopt the SBI short term deposit rates for the corresponding period, as per the principle laid down by the Bangalore-ITAT in the case of M/s. Logix Micro Systems Ltd., in ITA No. 423/Bang/2019 by order dated 07/10/2010. 5. Assessee is therefore, before us in this appeal, contending that when the assessee is rendering ITeS services to both AE segment and non-AEs segment, the comparison of those segments affords very reliable results than adopting the PLI taken from the external comparables. Learned AR submitted that for the assessment year 2009-10, a similar issue had arisen in assessee's own case before the Tribunal in....

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....DRP is justified in affording the findings of the learned TPO on both the aspects. 8. We have gone through the record in the light of the submissions made on either side. On the aspect of adoption of the most appropriate method, in assessee's own case for the assessment year 2009-10, a Co-ordinate Bench of this Tribunal held that:- "10. Having regard to the rival contentions and the material on record, we find that where the assessee has both the AE as well as non-AE transactions, the operating profit and operating cost relating to the AE transactions alone ought to be considered for arriving at the ALP and thereafter the fixed cost attributable to both the transactions ought to be apportioned. When the TPO has adopted the TNMM as the mo....