profits."
On the basis of his aforesaid observations, the TPO rejected RPM and
applied TNMM as the most appropriate method. Further, the operating
profit ... that no cogent reasoning was given by the TPO for rejecting RPM and
substituting the same by TNMM. The ld. A.R took us through
that no cogent reasoning was given by the TPO for rejecting RPM and
substituting the same by TNMM. The Id. A.R took us through ... assessee has not been
rejected by the TPO. The reason for rejection by the TPO of RPM as the
most appropriate method is that
transaction
is at arm's length.
4.3 The learned TPO rejected the RPM as most appropriate
method due to following reasons:
(a) The comparables ... comparability.
4.4 In view of the above observations, the learned TPO rejected
the RPM applied by the assessee as most appropriate method.
The learned TPO
negated both these submissions of the
assessee. The TPO has rejected RPM for the reason that the details and
information necessary for computing margins ... details and information can be no ground to
reject RPM as the MAM, as the TPO has powers to call for the necessary
details from
course of proceedings, the TPO rejected the assessee's TP
Analysis under RPM, conducted a fresh TP comparability analysis by
adopting TNMM ... determining
the ALP of international transactions with its AEs. The TPO rejected RPM
and adopted TNMM as the MAM, which is upheld
benchmarking the international
transactions of the assessee. In fact, the TPO while rejecting the RPM had
observed that as the amount of the resale price ... possible to make adjustments for such differences. Also, the TPO
after rejecting the RPM method had declined to accept 4 comparables (out of 6
comparables
Method (RPM) as the most appropriate method. The Transfer
Pricing Officer (TPO) rejected RPM and applied Transactional Net Margin Method
(TNMM) as the most appropriate ... TPO are superficial and
unsubstantiated. No plausible reason has been given by the TPO to reject the
method of determining ALP from RPM to TNMM
pages 10 to 24 of Appeal Set. Ld. TPO summarised objections on
page 24 but rejected RPM as Most appropriate method (MAM) and
adopted TNMM ... contention
raised before the TPO. It is noticed that the TPO has given
adequate reasons his TP order for accepting RPM which he
has reiterated
such, on the basis of the aforesaid observations, the
TPO rejected the RPM method and adopted the Transaction Net Margin
Method (TNMM) at entity level ... Further, we find that
another reason given by the TPO/DRP for rejecting the RPM is that the
assessee as per them was a full
Food Safety & Hygiene Solutions Pvt. Ltd.
3.3. The ld. TPO rejected the RPM and selected TNMM as the Most
Appropriate Method of the assessee ... assessee had been rejected by them. We
find that a primary reason given by the TPO for rejecting RPM as the
most appropriate method
