The Tribunal held that rule 10B(1)(b)(iv) of the Income-tax Rules, 1962 provides that adjustments can be made to take into account the differences between the controlled and uncontrolled transactions that are likely to materially affect the price or cost or profit. The contention of the assessee that suitable adjustments should be made to iron out the differences of profit between the profit of tested company and the comparables was sustainable. On this score, there was no illegality in the order of the Commissioner (Appeals). It further held that the Assessing Officer/Transfer Pricing Officer was to make adjustments to the margins earned by the comparables instead of the margins of the assessee. (AY.  2013-14)