TNMM had to be used instead of PSM if assessee was only selling machines manufactured by Head Office

The ITAT Delhi bench held that where assessee, a Japan based company, was involved in selling of machines manufactured by head office to various customers in India through its branch office, in view of fact that in transfer pricing proceedings TPO had accepted TNMM as most appropriate method, he could not make addition to assessee's ALP by holding that in terms of Profit Split Method (PSM), 50 per cent of gross profit arising from sales was attributable to PE in India.