1. In the given case, the assessee is engaged in manufacturing of chemicals. It had sold said products to its AE and non-AE and applied TNMM to benchmark said transactions.
2. However, Ld. TPO relying upon internal CUP and made addition to the assessee’s ALP in respect of various products sold to AE.
3. Since intra AE transactions were fundamentally different in character under economic circumstances and contractual terms and cannot be compared with the independent transactions entered into by the assessee, TNMM applied by the assessee was correct method and application of CUP method was not justified.
Pr. CIT v Gulbrandsen Chemicals (P.) Ltd. [2020] 119 taxmann.com 52 (Gujarat-HC)
