Question before the Special Bench was “whether or not the provisions of section 92 can be invoked in a situation in which income of the assessee is eligible for tax exemption or tax holiday and thus not actually chargeable to tax in India, or in a situation in which there cannot be any motive in manipulating the prices at which international transactions have been entered in to ?”

Special Bench held that even if an assessee is eligible for tax exemption at the rate of hundred percent under section 10A/10B of the Act, then also the arm’s length price on international transactions deserve to be determined under S. 92C of the Act.   (ITA NoS. 1352, 1258, 1822 & 1874/Ahd/2011-2012& 2014, dt.  24. 10. 2019)(AY.  2006-07 to 2008-09)