S. 92C : Transfer pricing-Arm’s length price-Manufacture and assembly-Comparable-Company passed turnover filter but fails to pass functional analysis-Department’s appeal to remand the matter not justified and entertained-Addition was deleted [S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Aggregation- Aggregation is not a rule of blind application and it is to be applied in certain situations and there has to be a scientific or rational basis for adoption; unless characteristic of ‘closely-linked’ is satisfied, aggregation is not possible-Matter remanded.

S. 92C : Transfer pricing-Arm’s length-Commercial expediency of expenditure-No separate adjustment is required to be made.

S. 92C : Transfer pricing-Arm’s length price-Technical assistance received-Order of CIT (A) giving relief was not challenged-Addition was deleted.

S. 92C : Transfer pricing-Arm’s length price-Adjustmnet of management fee-Disallowed under section 40(a)(i)-Disllaowing the same for Transfer pricing adjustment will lead to taxing the same amount twice-Addition was deleted.[S. 40(a)(i), 154]

S. 92C : Transfer pricing-Arm’s length price-Comparable-Negative margin-Comaprable-Segmental details relating to various segments were not available–Sale of software license-Segmental details relating to revenue earned were not discernible-Could not be selected as comparable. [S. 92CA]

S. 92C : Transfer pricing-Arm’s length price-Failure to place verifiable information-Justified in rejecting as tested party-Turnover filter-Difference in turnover is not substantial-Cannot be excluded-Adjustment should be restricted only to international transactions and not entity level transactions. [S. 92CA]

S. 92C : Transfer pricing-Arm’s length price-Guarantee commission fee of 1 percent-Held to be reasonable-Followed order of earlier year-Share capital-Adjustment of interest to be made with other loans giving similar privilege-Business expenditure-TPO only has to ascertain arm’s length price of a transaction and it is not TPO’s job to decide whether a business enterprise should have incurred a particular expense or not. [S. 37(1), 92CA]

S. 92C : Transfer pricing-Arm’s length price-Captive power plants-Eligible business-(State Electricity Board (SEB)-Transaction of transfer of power in Rajasthan from eligible unit to non-eligible unit should be benchmarked at purchase price of power from SEB-Steam cannot be determined at nil. [S. 80IA 92BA]

S. 92C : Transfer pricing-Arm’s length price-Manufacturing of compressors and mining & production tools-Four types of cost-TPO was not justified in considering only two expenses, namely, manufacturing and marketing as contributing to earning of profits. [S. 92CA]