ACIT v. Nord Drive Systems Pvt. Ltd. (2020) 185 DTR 312 / 203 TTJ 266 (Pune)(Trib.)

S. 92C : Transfer pricing–Arm’s length price–DRP was right in law in accepting the contention of assessee to grant custom duty adjustment, when the assessee has worked out the adjustment in its own hands while as per Rule 10B(1)(e)(iii), if any adjustment is to be made it should be made in the hands of comparable companies only.

Dismissing the appeal of the revenue the Tribunal held that e  DRP was right in law and on facts in directing to allow cash PLI to the assessee and ignoring the fact that cash profit ratio is not a valid PLI as per the Indian Transfer Pricing Regulations and  the DRP was right in law and on facts in accepting the contention of assessee to grant custom duty adjustment, when the assessee has worked out the adjustment in its own hands while as per Rule 10B(1)(e)(iii), if any adjustment is to be made it should be made in the hands of comparable companies only. (AY. 2011-12)