TPO to determine ALP of royalty payment using TNMM method: ITAT Bangalore

Toyota Boshoku Automotive India Private Limited Vs DCIT (ITAT Bangalore) ITAT Bangalore held that disallowance of entire royalty payment by taking ALP at NIL not justified since there is no change in facts, circumstances or functions and hence principle of consistency should be applied. Accordingly, TPO directed to determine ALP of royalty using TNMM as most appropriate method. Facts- The assessee company is jointly owned by Tayota Boshoku Corporation-Japan (70%), Tayota Boshoku Asia Company Ltd- Thailand (25%) and Tayota Tsusho Corporation- Japan (5%). The assessee company is engaged in the b...