addition to Comparable Uncontrolled Price (CUP) method, Resale
Price Method (RPM), Cost Plus Method (CPM), Profit Split Method (PSM) and
Transactional Net Margin Method (TNMM ... Method (RPM) and
Cost Plus Method (CPM), has an inherent edge over indirect methods such as
Transactional Net Margin Method (TNMM) and Profit Split Method
transaction shall be determined by any of
the following methods, being the most appropriate
method, having regard to the nature of transaction or
class ... prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
transaction shall be determined by any of
the following methods, being the most appropriate
method, having regard to the nature of transaction or
class ... prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
transaction
shall be determined by any of the following methods, being the most
appropriate method, having regard to the nature of transaction or class ... prescribe,
namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
chain of transactions.
8.2 Shifting of profits need not only be done by
making improper division of profits earned in a
transaction by the efforts ... that PWT did not earn profits
from the transactions the assessee is impliedly using
profit split method. Use of this method is not
warranted
transaction shall be
determined by any of the following methods, being the most appropriate
method, having regard to the nature of transaction or class ... uncontrolled price method;
9
IT(T.P)A No.1009/Bang/2014
(b) resale price method;
(c) cost plus method;
(d) profit split method
sustainable because he had used TNMM method
and also used profit split method for the attribution of profit
for the same international transaction ... adopted TNMM method as most appropriate method
in accordance with OECD Guidelines, and the operating
profit/operating cost was considered as profit level indicator
method, being the most appropriate method having regard to the nature
of the transaction or class of the transaction etc. The various methods as prescribed ... under:
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method;
(f) such
while computing
adjustment.
Grounds in relation to Substantive adjustment using Residual
Profit Split Method approach
17. erred on facts and circumstances of the case ... application of the method.
18.1 erred in considering the Appellant's own profitability for undertaking
a profit split instead of the combined profits
report has followed TNNM method for the purpose of
3
benchmarking. Operating profit/Total Cost has been used as Profit Level
Indicator ... prescribe, namely :-
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
