S. 92C : Transfer pricing-Arm’s length price-Comparables-Functionally different from assessee to be excluded from list of comparables-Transactional net margin method-Foreign exchange fluctuation gains on re-statement of outstanding debtors as on balance-sheet date-Part of operating revenue-Assessee within ± 5 Per Cent. tolerance range-No transfer pricing adjustment called for. [S.92C(2)]

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-comparables functionally dissimilar or involved principally in on-site development to be excluded-where average margin or segmental information not available, matter remanded for recomputation.

S. 92C : Transfer pricing-Arm’s length price-Remittance of funds by assessee to its Associated Enterprises by way of share application money and loan-Assessee neither charging interest on its receivables nor paying any interest on its payables to its Associated Enterprises-Notional interest could not be charged on amounts due from Associated Enterprises-No adjustment warranted.

S. 92C : Transfer pricing-Arm’s length price-Adjustment of working capital-Advance to suppliers-Matter remanded-Comparable-Manufacturing sales less than 75 percent of total sales-Cannot be considered as comparable for bench marking the international transaction of 100 percent manufacturing activity of the appellant company.

S. 92C : Transfer pricing-Arm’s length price-Subsidy received under Incentive Scheme of Government of Maharashtra-Capital receipt-Cannot form part of operating revenue of manufacturing segment for the purpose of determining ALP under the TNMM-Excess custom duty paid cannot be reduced by the difference in the amount of customs duty.

S. 92C : Transfer pricing-Arm’s length price-Payment to intra-group services and not stewardship activity-ALP determination was not adjudicated-No ground was raised by the revenue.

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Not produced relevant information of the Foreign AEs-Assessee itself is to be treated as the tested party-When the capacity utilization figures of the comparable are not available, ALP can be determined with gross profit margins only qua raw material cost to the exclusion of direct expenses-Turnover filter-Adjustment to be made at entry level only to the value of international transactions. [R. 10B(1)(e)]

S. 92C : Transfer pricing-Arm’s length price-TP adjustments should be restricted to the AE transactions only-Reversal of provision for write back-Matter remanded-VAT refund-Non operating and ice versa-Miscellaneous income-Can not be considered as operating income. [R. 10B]

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.