Held that functionally different from assessee to be excluded from list of comparables. If the foreign exchange fluctuation gains were treated as operating revenue and the six companies were excluded from the list of comparables, the assessee would be well within the ± 5 per cent. tolerance range in terms of the second proviso to section 92C(2) of the Act and there was no need to make any transfer pricing adjustment in respect of provision of information technology enabled services by the assessee to its associated enterprises..(AY. 2009-10)
Tech Mahindra Business Services Ltd. v. DCIT (2021) 91 ITR 8 (SN) (Mum.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Comparables-Functionally different from assessee to be excluded from list of comparables-Transactional net margin method-Foreign exchange fluctuation gains on re-statement of outstanding debtors as on balance-sheet date-Part of operating revenue-Assessee within ± 5 Per Cent. tolerance range-No transfer pricing adjustment called for. [S.92C(2)]