range (upper range being 10.25%) as
provided in proviso to Section 92C(2) of the Act, the learned TPO deleted the
entire transfer pricing adjustment ... Seaways Shipping) falls
within the +/-5% range provided in proviso to Section 92C(2) of the Act
(upper range being 10.25%). Thus, the international transactions
will typically be the party with least intangibles.
20. As per section 92C(1) of the Act, ALP of the international transact is required ... transfer pricing guidelines issued by the US Internal revenue services under section
482 provide and discuss the concept of transfer pricing. Section
assessee
at 19.57% on cost as per the working u/s 92C ... made
as under:-
Application of the proviso to Section 92C(2) of the Income Tax
Act, 1961 in the case of CSMM
Particulars Profit
Adit (I.T) - 1(1), Mumbai vs M/S. Asia Today Ltd., Mumbai on 30
defined under section 92A of the Act.
"92A (1) For the purposes of this section and sections 92 , 92B , 92C ... report under Section 92E of the Act. Yet the AO has to proceed to
determine the ALP under Section 92C
benefit of the 5% variation as per the proviso to
section 92C(2) of the Act to the Appellant.
4. On facts ... allocating a part of it to the unit eligible for exemption under section 10A
Page | 4
of the Act („10A unit‟) when such expense
computing deduction u/s 10A of the Act. Accordingly he
prayed that the AO may be directed to re-compute the deduction ... eligible for deduction u/s 10A of
the Act, in view of the bar provided in the proviso to sec. 92C
assessee was adopting TNMM as the
most appropriate method as per Sec. 92C , therefore, it was obligated
to determine the net profit margin ... with the AEs for determining the ALP of the said
transactions u/s 92C as per rule 10B(1)(e). As observed by us
hereinabove
acceptable method for
determining arm's length price prescribed under section
92C of the Act.
3. That the assessing officer erred on facts ... ignored
the CUP method, being one of the methods prescribed under section
92C of the Act, and held the impugned inter-unit purchases
general observations, de hors adoption of any prescribed
method contemplated in Sec. 92C(1) of the Act, the TPO had therein
concluded that
