Transfer Pricing- Excess Earnings Method (EEM), is appropriate method to determine arm’s length price of transaction of sale of Intangible Property and the method construes Comparable Uncontrolled Price (CUP) method

M/s Tally Solutions Private Limited Vs. Deputy Commissioner of Income Tax, Bangalore for ITA No. 1235(Bang)/2010; AY- 2006- 07 Facts:– The taxpayer was engaged in the business of software development, marketing and sale of ‘tally’ branded financial accounting and management software. On 31 January, 2006 it sold its intellectual property rights including patent, copyrights and trademarks (`IPR’) to Tally Solutions FZLLC, Dubai (Tally Dubai) for a total consideration of INR 38.5o crores. The taxpayer did not use any particular method to compute the value of IPR, on the pr...