section (3), the
Assessing Officer shall proceed to compute the total income
of the assessee under sub-section (4) of section 92C in
conformity with ... section(3), the
Assessing Officer shall proceed to compute the total
income of the assessee under sub-section (4) of
section 92C having regard
erred in
wrongly interpreting the provisions of second proviso to section 92C of the
Income Tax Act and in applying the same. The variance ... With regards to variance of 5%, as per proviso 2 of section 92C :
26
ITA Nos.1486 to 1489/Mum/2023
10AB. For the purposes of clause (f) of sub-section (1) of section 92C , the
other method for determination of the arm's length ... Therefore, the ad-hoc
determination of ALP by the TPO dehors Section 92C of the Act cannot be
sustained."
25. In view
Section
92 (1) which states that any income arising from an international
transaction shall be computed having regard to the ALP and Section 92C ... international transaction. 928.(1) For the purposes of this
section and sections 92 ,92C,92D and 92E ,"international transaction‖
means a transaction between
length price in relation to the international transactions in accordance with
Section 92C(3) of the Act;
5. On the facts and circumstances ... without applying any one of the prescribed methods contemplated in
Sec. 92C(1) of the Act at Rs.nil, as against that determined
length price computed in terms of section
92C of the Income Tax Act.
3. During the course of assessment proceedings, the matter was
referred ... defined in section 92B , any amount is added or disallowed in computing
the total income under sub-section (4) of section 92C , then, the amount
section (3), the Assessing Officer shall
proceed to compute the total income of the assessee under sub-section (4) of
section 92C having regard ... such opportunity has been given in
terms of sub- section 4 of section 92C read with section 92CA.
Accordingly, we are of the opinion that
defect in the same. This is made clear by sub-section (3) of section 92C which provides
that the AO may intervene only ... assessee before determining
such price. Thereafter, as provided in sub-section (4) of section 92C , the AO may
compute the total income on the basis
arithmetic mean of the comparables, as contemplated
under the proviso to section 92C(2) as it stood at the time of
preparing the TP documentation ... given a standard deduction of 5% as provided under proviso to
section 92C(2) of the Act before making adjustment for the transfer price.
Reliance
section 92C .
"10B. (1) For the purposes of sub-section (2) of section 92C , the arm's
length price in relation ... international transaction has not been determined in accordance with
sub-sections (2) of Sec.92C of the Act. The TPO has disputed the manner
