Dismissing the appeal of the revenue the Court held that ; when there is a difference in level of capacity utilization of assessee and level of capacity utilization of comparable, then adjustment would be required to be made to profit margin of comparable on account of difference in capacity utilization in terms of rule 10-B (1)(e)(iii).( AY.2005 -06)
CIT v. Petro Araldite (P.) Ltd. (2018) 256 Taxman 16 (Bom)(HC)
S. 92C : Transfer pricing -Arm’s length price- When there is a difference in level of capacity utilization of assessee and level of capacity utilization of comparable, then adjustment would be required to be made to profit margin of comparable on account of difference in capacity utilization in terms of rule 10-B (1)(e)(iii)