S. 92C : Transfer pricing-Arm’s length price-Recharacterization of the transaction of debt in to equity is not approved-Bench marking of interest payment to AES at 13. 75 % matter remanded-Additional ground on Education cess was allowed. [S. 94B]

S. 92C : Transfer pricing-Arm’s length price-Interest on outstanding receivables-Adjustment is not warranted if pricing/profitability of assessee is more than working capital adjusted margin of comparables companies.

S. 92C : Transfer pricing-Arm’s length price-Assembling of products and sold to customers-TPO was justified in rejecting the RPM and adopting TNMM as the most appropriate method. [R. 10B]

S. 92C : Transfer pricing-Arm’s length price-Operating revenue expenses incurred-Order set aside-TP adjustment are only in respect of international transactions and not entry level transactions. [S. 92]

S. 92C : Transfer pricing-Arm’s length price-Customs duty paid-Adjustment is not warranted-Selection of comparable-BEML being a Government company cannot be included in the list of comparables. [R. 10B(1)]

S. 92C : Transfer pricing-Arm’s length price-Comparable-BEM being a Government company-Not includible in the list of comparables-99.65 per cent of the manufacturing activity of JCB Ltd is functionally similar-Included in the comparables. [R. 10B]

S. 92C : Transfer pricing-Arm’s length price-Working Capital adjustment Advances to suppliers and advances from customers are integral part of working capital adjustment and cannot be excluded in computing working capital adjustment. [R. 10B]

S. 92C : Transfer pricing-Once it is held that the property is used by the assessee for business purposes and the Revenue fails to bring on record and evidence to the contrary, it is not open to the TPO to apply ‘Other method’ and determining Nil ALP on the premise that no independent party would have paid any rent for not having occupied the premises-Addition of TP adjustment is deleted. [S. 37(1)]

S. 92C : Transfer pricing-Arm’s length price-There cannot be a transaction, between independent enterprises, of interest-free debt funding of an overseas SPV by its sponsorer; if such a transaction between independent enterprises is at all hypothetically possible, arm’s length interest on such funding will be ‘nil’-A performance guarantee by SPV, and if such a commitment was reiterated for performance of own obligations, reiteration of this own commitment could not have an arm’s length price. [S. 92A, 92F(ii)]

S. 92C : Transfer pricing-Arm’s length price-Where extraordinary financial event of amalgamation happened in the preceding year and got recorded in books of accounts of the preceding year itself, company cannot be removed from list of comparables for current year on this sole reason, if it is otherwise functionally similar-Inclusion of a government company as comparable by the TPO rejected. [R. 10B]