Tribunal held that rate at which the distribution company sells the electricity to the customers has to be adopted as CUP for bench marking the transaction relating to transfer of electricity to other units. Purchase made from AE are at arm’s length price and non AE transactions are considered under CUP method. (AY. 2013-14, 2014-15)
Jayant Agro Organics Ltd. v. Addl. CIT 214 TTJ 368 (Mum.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Cup method-Rate at which the distribution company sells the electricity to the customers has to be adopted the transactions relating to transfer of electricity to other units-Purchase made from AE are at arm’s length price and non AE transactions are considered under CUP method.