TaxTMI 
TaxTMI 
2020 (2) TMI 1715
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.... action of AO/DRP in rejecting internal Transactional Net Margin Method (TNMM) and applying the external TNMM. 4. The brief facts of the case as emanating from the record are that the assessee company is engaged in the manufacture and distribution of fluid power equipment such as pumps, gear pumps, valves, cylinders an related components for mobile and industrial markets. The assessee company is a joint venture of Mahindra & Mahindra Ltd. Presently, the assessee has become a wholly owned subsidiary of Eaton Corporation. During the year under consideration, the assessee reported international transactions with its AE pertaining to import of raw materials, trading goods and components. In manufacturing activity, the assessee submitted segmen....
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....he same internal TNMM for A.Ys. 2008-09, 2010-11 and 2011-12. There is no contrary order brought on record by the respondent-revenue in this regard. Therefore, we uphold the internal TNMM adopted by the assessee in determining ALP of its international transactions in purchase of raw material, components and finished goods. Accordingly, ground No. 2 raised by the assessee is allowed. 6. In view of our decision in ground No. 2 in favour of assessee, the ground Nos. 3 and 4 raised by the assessee are become academic, hence, require no adjudication. 7. Ground Nos. 5, 6 and 7 raised by the assessee challenging the action of AO/DRP in making the upward TP adjustment relating to international transaction in respect of payment made to AEs for cor....
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....ils of the transaction so that the comparable transactions can be identified and not been able to demonstrate expertise of ECICL, the cost actually incurred by ECICL in providing such services to AE, there was necessity to identify procurement of services with reference to tangible benefits derived, arm's length price of the transaction is determined as NIL. Aggrieved by the order of AO, the assessee is before us. 9. Heard both parties and perused the material available on record. The ld. AR drew our attention the page 256 of paper book, submitted that the Tribunal in assessee's own case for A.Y. 2010-11, dealt the issue and decide the same in favour of assessee and referred to para Nos. 18 to 21. On perusal of the same, we note that t....