Held that the assessee has not shown any rational basis of allocation, order of TPO on the basis of revenues from the two segments is proper. No adjustment is allowable on account of the custom duty as the assessee has paid more customs duty than that paid by the comparables. Held that the CUP is not the most appropriate method in the facts of the case. CIT(A) is justified in accepting the assessee’s contention that the TNMM should be applied in respect of international transaction of sale of finished goods. (AY. 2014-15)
Ampacet Speciality Products (P) Ltd. v. Dy. CIT (2023) 155 taxmann.com 448 / (2024) 227 TTJ 112 / 233 DTR 31 (Pune)(Trib)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Allocation of common expenses-Allocation done by the TPO on the basis of revenues from the two segments is in order-Adjustment on account of payment of customs duty-No adjustment is allowable on account of the fact that the assessee has paid more customs duty than that paid by the comparables-Most appropriate method-TNMM should be applied in respect of international transaction of sale of finished goods.