Tribunal held that ,Loss on sale of fixed assets not part of operating cost .AO has to carry out adjustment in computing profit level indicator as well as profit level indicator of comparables .Errors which crept in to while computing margins of comparables to be rectified .Transfer pricing study for a particular year is unique for each year and depend upon functions performed , risk assumed and assets employed by entities , there is no rule of consistency .Broad functional comparability of entities to be carried out there may not be product to product comparison. AO to reappreciate functional comparability between assessee and comparable .(AY.2008 -09)
Vishay Semiconductor India Pvt Ltd v. ACIT ( 2018) 65 ITR 1 (Mum) (Trib)
S. 92C : Transfer pricing – Arm’s length price -Net Margin method-Loss on sale of fixed assets not part of operating cost -AO has to carry out adjustment in computing profit level indicator as well as profit level indicator of comparables – Errors which crept in to while computing margins of comparables to be rectified -Transfer pricing study for a particular year is unique for each year and depend upon functions performed , risk assumed and assets employed by entities , there is no rule of consistency – Broad functional comparability of entities to be carried out there may not be product to product comparision- AO to reappreciate functional comparbility between assessee and comaprbles . [ S.92CA ]