The Delhi ITAT in the recent judgement of Tilda Riceland Pvt Ltd. V. ACIT has accepted the use of Private Database while applying CUP method. The Tribunal held that the Rule 10D does not bar databases compiled by private entities.
The Assessee in the given case had selected CUP method as the most appropriate method and had relied on 'daily export port data' generated from Tips Software, a database compiled from public data obtained from Customs Authority by a private entity.
The TPO rejected the data stating that private databases were not covered in Rule 10D(3) as authentic documents. The ITAT rejected the TPO's logic stating that Rule 10D(3) states only an illustrative list and does not preclude any other databases. It further held that the data is public data maintained by the customs department at various ports and it was also open to the TPO to call for further information from this database supplier and examine authenticity of the data so furnished.