method prescribed therein. The TPO
has not followed any of the prescribed method, i.e. CUP, Transaction Net
Margin Method, Resale Price Method, Profit Split ... using prescribed method such as
(CUP)comparable uncontrolled price method, transaction net margin method
(TNMM), resale price method (RPM) or profit split method
made:-
(i) By applying Transactional Net Margin Method and rejecting Comparable
Uncontrolled Price method or Profit Split Method for determining the
amount of profit ... made:-
(i) By applying Transactional Net Margin Method and rejecting
Comparable Uncontrolled Price method or Profit Split Method for
determining the amount of profit
prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method ... prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
than others, on a
conceptual note, transactional profit methods (i.e.
Transactional Net Margin Method and Profit Split
Method) are treated as methods of last ... prescribe24, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
approach of benchmarking the
alleged international transaction of AMP spend using profit split method. The
Assessee vide submissions dated December 29, 2020 and December ... substantive basis by applying Residual Profit Split Method ("RPSM") which is
extension of BLT for the purpose of benchmarking, the AMP expense incurred
appreciating that
transaction of royalty cannot be benchmarked using the profit split method.
5. On the facts and in the circumstances of the case ... Income-tax Rules, 1962, relating to Profit Split
Method.
8. The lower authorities, erred in not noticing that the above methodology is
also in accordance
considered the "residuary profit split method" as most
appropriate method instead of TNMM method. However, for
the assessment year ... TNMM method as most appropriate method but only for the
assessment years 2007-08 to 2009-10, the "residuary profit
split method
Profit Split Method (PSM) and objected on the
TNMM method applied by the undersigned as the Most Appropriate Method (MAM) On
perusal of details ... Group Profit had not been compared with any external comparable to
verify the Profit Split.
As a result, the adoption of TNMM Method, the comparison
rejecting the benchmarking analysis of the assessee and
applying the profit split method as the most appropriate method. The benchmarking done
by the assessee being ... record. Considering these facts the Ld. TPO applied profit split method by
dividing profits in the ratio of contribution made by each unit
while
computing adjustment.
Grounds in relation to Substantive adjustment using Residual
Profit Split Method approach
15. erred on facts and circumstances of the case ... application of the
method.
16.1 erred in considering the Appellant's own profitability for
undertaking a profit split instead of the combined profits
