AO made additions to assessee’s ALP on ground that commission paid by assessee to associated enterprise was excessive and not at arm’s length . Tribunal held that commission paid by assessee to Associated Enterprise was at rate of 7.84 per cent as against 11 per cent paid to unrelated party. Tribunal thus set aside addition made by AO. High Court upheld order passed by Tribunal
PCIT v. Sun Pharmaceutical Industries Ltd. (2019)109 taxmann.com 54 / 266 Taxman 95 ( Guj) (HC) Editorial: SLP of revenue is dismissed , PCIT v. Sun Pharmaceutical Industries Ltd. (2019) 266 Taxman 94 (SC)
S. 92C:Transfer pricing – Arm’s length price – Commission – commission paid to Associated Enterprise at rate of 7.84 per cent as against 11 per cent paid to unrelated party was at ALP- Deletion of addition is held to be valid .