Tribunal held that, Turnover filter was one of essential filter in order to select comparables when acted in same atmosphere. While conducting transfer price analysis, an effort was being made to compare related party transactions undertaken by assessee with uncontrolled transactions undertaken by comparable, and thus arrive at conclusion as to whether transaction bench mark was at arm’s length or not.Chosen company, though functionally comparable had entered international transactions beyond percentage with related parties, it was quite possible that its overall profit may have distorted due to such transaction rendering it as uncomparable. There were so many other circumstances which were required to be examined under FAR analysis, and due to this, adjudicator was required to apply appropriate filter in order to work out comparables which were not under any influence of related party transactions. CIT(A) rightly made analysis that smaller companies having less turnover could not be considered as comparable with assessee. Similarly, company who had more turnover than assessee could not be compared with assessee. (AY.2007-2008)