Gco Technologies Centre P. Ltd. v. ITO (2020) 84 ITR 21 (SN)/(2021) 187 ITD 136 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparable-Loss making companies to be excluded-High margin cannot be excluded unless backed by certain extraordinary events-Risk adjustment to be considered-Adjustment to be worked out applying average profit level indicator of comparables to cost of international transactions and not on its sale turnover.

Tribunal held that Loss making companies to be excluded. High margin cannot be excluded unless backed by certain extraordinary events. Risk adjustment to be considered. Adjustment to be worked out  applying average profit level indicator of  comparables to cost of  international transactions and  not on its  sale turnover.(AY.2010-11)