S. 92C : Transfer pricing-Arm’s length price-Comparable-Since working capital adjusted margin of assessee had already been factored in delay in receivables, and further assessee was not charging interest on overdue debts from third parties, and was also not paying any interest to creditors, no adjustment was further warranted-When the TPO could not controvert the independent reports of valuation furnished by the Assessee and followed no prescribed method of determining ALP, yet made additions, the same was termed untenable-With primary adjustment being rejected, consequent secondary adjustment fails too-If an Indian entity has satisfied the TNMM i.e., the operating margins of the Indian enterprise are much higher than the operating margins of the comparable companies, no further separate adjustment for Royalty expenditure is warranted.
Dell International Services India (P.) Ltd v. JCIT (2022) 94 ITR 247 (Bang.)(Trib.)