profit attributable to
the appellant company under the Profit Split Method in
connection with the absolute sale of intangible asset to AE when
such revenue ... meager profit of Rs.42,17,810/- on the sale of IP, it was,
therefore, proposed to apply Profit Split Method (PSM) to bring
erred in law and on
facts in not applying the Profits Split Method (PSM)
which was approved by the TPO, on non-AE
transactions ... selected as most appropriate
method (MAM) to determine the reasonable allocation of deemed
taxable profit in India. The Profit Split was calculated on the basis
financial result of merchant
banking activity (with low profit margin) would result in profit margin of total
entity getting reduced and thus, such comparables ... perfect
comparables could be found, then use of other methods like profit split method
might be explored.
5.7 On the proposition
that a part of the Assessee‟s income,
computed on profit split method, is chargeable to tax under the Act.
2.2 Whilst the Assessee claims ... 2013, 2385/2013 & 2390/2013 Page 5 of 31
apply Profit Split Method (PSM) for determining the ALP instead of
Transactional Net Marginal Method
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
approach.
6. erred in holding that the appellant should have adopted profit split
method ('PSM') in absence of CUP data without appreciating that ... referred to Profit Split Method, being an appropriate method in this
case. However, the relevant material to apply this method was neither available
on record
property or provision of services by
the enterprise;
(d) profit split method, which may be applicable mainly in
international transactions or specified domestic transactions
involving ... profit is then split amongst the enterprises
in proportion to their relative contributions, as evaluated under
sub-clause (ii);
(iv) the profit thus apportioned
following methods, being the most
ITA 381/2013 & Connected Matters Page 16 of 32
appropriate method, having regard to the nature of transaction ... prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
Dcit 1(3), Mumbai vs Syngenta India Ltd, Pune on 30 November, 2016
आयकर अपीलीय
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
