The assessee-company was engaged in the business of providing merchant banking and related financial and investment advisory services. It filed return of income for the year under consideration. This was referred to the TPO for an examination of international transactions of the assessee. The TPO recommended a transfer pricing adjustment of Rs. 80.56 lakhs for the international transaction of brokerage received from Associated Enterprise (AE) in the case of DVP trade transaction. On appeal CIT (A) directed the Assessing Officer to reduce transfer pricing adjustment from Rs.80.65 lakhs to Rs.70.41 lakhs considering the plus/minus 5 per cent variation from the Arm’s Length Price (ALP).  On appeal the Tribunal held that as per the proviso to section 92C(2) the same was amended subsequently and as per the Circular of CBDT No. 5/2010 dated 3-6-2010, the amended provisions were applicable with effect from 1-4-2009 i.e. for the assessment year 2009-10 and subsequent years. Thus, in this way, the benefit of plus/minus 5 per cent as sought by the assessee was found to be acceptable for the period under consideration and, as such, the CIT (A) had rightly directed the AO r/TPO to reduced the TP adjustment recommended by the TPO from Rs.80.65 Lakhs to Rs.70.41 Lakhs.  (AY. 2009 -10)