Sharing of net revenues consistently in controlled & uncontrolled transactions held as a valid comparable uncontrolled price

ACIT Vs. Agility Logistics Pvt. Ltd. (ITAT Mumbai)- ITAT held that the sharing of net revenues (i.e., amounts billed to customers less third party costs) in a 5o:5o ratio between the origin and destination companies in a consistent manner in controlled as well as uncontrolled transactions, constitutes a comparable uncontrolled price (CUP). In coming to its conclusion, the Tribunal took into account the fact that the 5o:5o model is a common industry practice. INCOME TAX APPELLATE TRIBUNAL. MUMBAI ITA No. 2000/Mum/2010 Assessment year 2004- 05 Asst. Commissioner of Income Tax – 8(1) Vs. M/s Ag...