S. 92CA : Transfer pricing-Reference to Transfer Pricing Officer-Arm’s Length price-Avoidance of tax –Adopted Transactional net margin method in previous years-Adopted Internal comparable uncontrolled price method in subsequent years as most appropriate-No explanation-Matter remanded to T.P.O to reconsider transfer pricing adjustment to justify appropriate method.

S. 92CA : Transfer pricing-Reference to Transfer Pricing Officer-Arm’s Length price-Avoidance of tax Reference to Transfer Pricing-Loan to overseas subsidiaries in foreign money-Interest to be estimated as foreign-currency loan and not rupee denominated loan-International libor rates to be taken as benchmark.

S. 92CA : Transfer pricing-Reference to Transfer Pricing Officer-Arm’s Length price-Avoidance of tax-Royalty-Assessee earning brand royalty from associated enterprise-Royalty to be quantified in terms of order for earlier years-Service fees at Ad hoc rate to be restricted.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Advertisement and sales promotion expenses-Reimbursement expenses-Royalty-Business expenditure-Allocation of expenses-Additional evidence-Bench marking of expenses-Advances written off-Subsidy-Royalty-workmen-Number of days. [S.4, 28(i), 36(1)(vii),37(1), 80JJAA, R. 10B(1)(a)]

S. 92C : Transfer pricing-Arm’s length price-Selection of comparable-Turnover filter-Turnover of assessee 332 crores-D.R.P justified in directing turnover of 200 crores and less than 2000 crores.

S. 92C : Transfer pricing-Arm’s length price-Determination-Payment of interest on compulsorily convertible debentures-Cannot be regarded as loan-Interest cannot be computed on libor-Interest rate of 9 and 12 percent justified.[S.92]

S. 92C : Transfer pricing-Arm’s length price-Royalty-Engaged in the business of industrial gases through plant operated with technical assistance from associated enterprise-Payments made to associated enterprise-Royal at 4% on sales to be taken as arm’s length-No contrary evidence to disregard factum of technical services rendered by associated enterprise-Computation of 1% fess by A.O. as arm’s length adhoc-Not sustainable-Matter remanded. [S. 92]

S. 92C : Transfer pricing-Arm’s length price-Fee for corporate guarantee-0.5%-Specified Domestic Transaction-Transfer of power from eligible units to manufacturing units-Adjustment to be deleted.

S. 92C : Transfer pricing-Arm’s length price-Interest on receivables-Not a separate international transaction-Net margin more than of comparables-Separate Benchmarking not required. Adjustment to be deleted.

S. 92B : Transfer pricing –Arm’s Length Price-Interest free loans to Associated enterprise-Adjustment on account of provision of bank guarantee to associated enterprises-No income earned and commercial expediency not relevant-Adjustment at 0.5% instead of 1.3%.