Benchmarking of royalty payments without adopting any of prescribed methods by TPO was invalid

Netafim Irrigation India Pvt. Ltd. Vs ACIT (ITAT Mumbai) Conclusion: Where TPO was not convinced with the benchmarking of international transaction of assessee, he should have independently benchmarked the arm’s length price of royalty payment by adopting any one of the prescribed methods which he had failed to do and determined arm’s length price at nil on purely ad–hoc basis without assigning any valid and acceptable reason, therefore, the addition made on account of adjustment made to the arm’s length price of royalty payment was to be deleted. Held:  Assessee had ente...