Dismissing the appeal of the revenue , the Court held that ; the Comparable Uncontrolled Price (CUP) method is not the Most Appropriate Method for determining the Arm’s Length Price (ALP) in respect of the transactions of (sales of goods and sales commission) with Associated Enterprises (AEs) if there are geographical differences, volume differences, timing differences, risk differences and functional differences. If it is not shown that the selection of TNMM as the Most Appropriate Method is perverse, the same cannot be challenged. ( ITA No. 1131,1102,1100 of 2015, dt. 07.03.2018)( AY. 2006-07, 2007-08, 2009-10)
PCIT v. Amphenol Interconnect India P. Ltd( 2018) 164 DTR 245/302 CTR 131/( 2019) 410 ITR 373 . (Bom)(HC) , www.itatonline.org
S.92C: Transfer pricing- Arm’s Length Price –Unless it is not shown that the selection of TNMM as the Most Appropriate Method is perverse, the same cannot be challenged.