On appeal by the Department, the Tribunal upheld the order of the Ld. CIT(A) granting proportionate adjustment and held that after granting proportionate adjustment, since the value of the international transaction fell within the range of +/- 5% as provided u/s. 92C(2) of the Act and therefore, the entire adjustment was liable to be deleted. (AY. 2011-12)
ACIT v. Sodexo Food Solutions India P. Ltd. (2019) 69 ITR 119 (Mum.)(Trib.)
S. 92C : Transfer pricing-Adjustment ought to be made only on proportionate value of the international transaction and could not be made at an entity level.