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4. In order to appreciate the controversy, we are reproducing in brief the findings of the Assessing Officer/TPO and the Income Tax Appellate Tribunal (‗Tribunal', for short) in the case of Sony Mobile Communication Ltd, i.e. the assessee/appellant in ITA No.16/2014 and the assessee/respondent in ITA No.155/2014 filed by the Revenue pertaining to assessment year 2008-09; Reebok India Company Ltd., i.e. the assessee/appellant in ITA No.109/2014 and the assessee/respondent in ITA No.213/2014 filed by the Revenue relating to assessing year 2008-09; and, Canon India Pvt. Ltd., i.e. the appellant in ITA No.512/2013 and respondent in ITA No.12/2014 filed by the Revenue relating to assessment year 2006-07. The said three assessees have been selected because in the case of Sony Mobile Communication Pvt. Ltd., Transactional Net Margin Method (‗TNM Method', for short) has been followed and in the case of Reebok India Company Ltd., TNM Method has been followed in respect of goods' sourcing and exports from India; Comparable Uncontrolled Price Method (‗CUP Method', for short) has been followed in respect of royalty paid by the Indian AE to the foreign AE and in respect of which separate substantial question of law has been framed and Resale Price Method (‗RP Method', for short) has been followed for import of apparels and footwear for re-sale. In the case of Canon India Pvt. Ltd., RP Method was adopted by the assessee for import of finished goods for resale. In the said case, the order passed by TPO is detailed and is a lucid exposition of the stand of the Revenue.

(b) resale price method;

(c) cost plus method;

(d) profit split method;

(e) transactional net margin method;

(f) such other method as may be prescribed by the Board. (2) The most appropriate method referred to in sub-section (1) shall be applied, for determination of arm's length price, in the manner as may be prescribed:

Provided that where more than one price is determined by the most appropriate method, the arm's length price shall be taken to be the arithmetical mean of such prices:

64. Section 92C(1) is of significance and relevance as it stipulates that arm's length price in relation to an international transaction can be determined by any of the five methods stipulated therein, with authority to the Board to prescribe a sixth method. It is an accepted case that the Board has prescribed such method in Rule 10AB with effect from 1st April, 2012. The five methods are (a) Comparable Uncontrolled Price Method; (b) RP Method, i.e. Resale Price Method; (c) CP Method, i.e. Cost Plus Method; (d) Profit Split Method; and, (e) TNM Method, i.e. Transactional Net Margin Method. Sub-sections (1) and (2) to Section 92C casts obligation on the assessed to compute arm's length price as per the methods prescribed. Consequently, the burden is on the assessed to select and justify the method adopted and the arm's length price declared. Under sub-section (3) to Section 92C, the Assessing Officer can proceed to determine the arm's length price in accordance with Section 92C(1) and (2) on the basis of material, information or documents in his possession, if any of the circumstances mentioned in clauses (a) to (d) are satisfied. The circumstances being: the price paid or charged for an international transaction has not been determined in accordance with sub-sections (1) and (2); information or documents relating to an international transaction has not been kept or maintained in accordance with the provisions of Section 92D(1) or the Rules; information or data used in computation or arm's length price is not reliable or correct; or the assessed has failed to furnish, within stipulated time, information or document required to be furnished as per notice under sub-section (3) to Section 92D. (See judgment dated 16th December, 2013 in ITA No. 306/2012 titled Li & Fung India Pvt. Ltd. vs. Commissioner of Income Tax of the Delhi High Court).

"10B. (1) For the purposes of sub-section (2) of section 92C, the arm's length price in relation to an international transaction or a specified domestic transaction shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :--

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(e) transactional net margin method, by which,--

(i) the net profit margin realised by the enterprise from an international transaction or a specified domestic transaction entered into with an associated enterprise is computed in relation to costs incurred or sales effected or assets employed or to be employed by the enterprise or having regard to any other relevant base;