PCIT Vs Willis Towers Waston India Private Limited (Punjab And Haryana High Court)
The Punjab and Haryana High Court dismissed the Revenue’s appeal against the order of the Income Tax Appellate Tribunal dated 11.09.2023 concerning the transfer pricing method applicable for Assessment Year 2018-19. The Revenue contended that the Tribunal erred in upholding the Comparable Uncontrolled Price (CUP) method adopted by the assessee and that the Transactional Net Margin Method (TNMM) adopted by the Assessing Officer was the most appropriate method.
The High Court noted that the Tribunal, in the assessee’s own case for Assessment Years 2011-12, 2013-14 and 2014-15, had held the CUP method to be the most appropriate method and binding on the Transfer Pricing Officer, particularly in view of the factual matrix. The High Court also referred to its decision in ITA No.85 of 2023, in which it had examined other aspects relating to Rule 10B(4) of the Income Tax Rules, 1962. For Assessment Year 2009-10, the method adopted was the same as that followed for Assessment Years 2011-12, 2013-14 and 2014-15, and the High Court had concurred with the Tribunal’s order.
The High Court reproduced the relevant findings of the Tribunal. The Revenue had argued before the Tribunal that the assessee had failed to submit invoices and details concerning independent contracts, functions and services rendered to Associated Enterprises and unrelated parties. According to the Revenue, the absence of these documents justified rejection of the CUP method and adoption of TNMM as the Most Appropriate Method.
