|DATE:||(Date of pronouncement)|
|DATE:||April 23, 2008 (Date of publication)|
(i) In order to determine the most appropriate method for determining the arm’s length price, it is first necessary to select the ‘tested party’ and the tested party will be the least complex of the controlled taxpayer and will not own valuable intangible property or unique assets that distinguish it from potential uncontrolled comparables.
(ii) the gross margins of the tested party need to be compared with gross margins of comparable uncontrolled transactions or unrelated enterprises entering into suchtransactions.
(iii) On facts, where the results of the analysis done from the Indian side by the assessee showed that the international transactions entered by the assessee with the associated enterprises were at arm’s length, no adjustments were permissible.