Held that subsidy received under Incentive Scheme of Government of Maharashtra is capital receipt hence cannot form part of operating revenue of manufacturing segment for the purpose of determining ALP under the TNMM. Excess custom duty paid cannot be reduced by the difference in the amount of customs duty. (AY. 2014-15)
Hyundai Construction Equipment India (P) Ltd. v. ACIT (2021) 208 DTR 449/(2022) 215 TTJ 383 (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Subsidy received under Incentive Scheme of Government of Maharashtra-Capital receipt-Cannot form part of operating revenue of manufacturing segment for the purpose of determining ALP under the TNMM-Excess custom duty paid cannot be reduced by the difference in the amount of customs duty.