Dismissing the appeal of the revenue the Court held that, the application of CUP method was what was canvassed by the Revenue and accepted by the Tribunal. Thus, there could be no grievance with regard to the application of CUP method. Similarly, the adjustment on account of quality as claimed by the assessee was allowed. Moreover, the TPO himself has accepted this price adjustment on account of perception of quality by allowing the adjustment at 10%.No question of law arises. (AY. 2010-11)
PCIT v. Merck Ltd. (2020) 185 DTR 401 / 312 CTR 242/ 275 Taxman 181/ ( 2021 ) 434 ITR 596 (Bom.)(HC)
S. 92C : Transfer pricing–Arm’s length price–Granting adjustment of 10% on account of quality difference and deleting the addition made by TPO/AO by applying CUP to arrive at ALP in respect of Bisoprolol-Held to be valid. [S. 10B(1)(a)(ii), 260A]