2024 (12) TMI 708

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....erred in not appreciating that in terms of the Rule 10B(1)(e) of Income-tax Rules, 1962 while applying the TNMM method and determining the relevant cost base no TP addition can be made without such cost base being effected? II. Whether the Tribunal erred in remanding the matter back to the DRP without appreciating that the genuineness of the transaction was not in question before the TPO or DRP and as such the remand on the premise for producing invoices was wholly erroneous? III. Whether the Tribunal erred in not appreciating that when the international transaction of purchase of capital good was already benchmarked in the CSD segment no occasion arose to benchmark it separately? IV. Whether the order of the Trib....

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....tested that the purchase of capital goods cannot be benchmarked separately. The main argument was the depreciation do form a component of operating cost and hence cannot be given separate treatment. * It was argued that the ALP of the international transaction pertaining to purchase of capital goods from AE has been determined along with other transaction covered CSD segment of the assessee under combined transaction approach. * The ld. DRP held that the assessee failed to produce evidences to substantiate the purchases and no evidences have been filed before the Panel or before the TPO. * The assessee at ground nos. 3.1 & 3.2 submitted that adequate opportunity has not been given before finalizing the order by th....

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....2F(v) and also in rule 10A(d). The rule defines the term 'transaction' to include: 'a number of closely linked transactions. 'Thus, where the transactions are not closely linked, then their ALP should be determined separately for each international transaction and such determination of ALP for 'an' international transaction as per section 92C(1) is done as per the most appropriate method, being one of the methods given in the provision. To put it simply, each international transaction is viewed separately and independent of other international transactions for determining its ALP by using one of the given methods, which is the most appropriate method having regard to the nature of transaction or class of transaction ....