Tribunal held that the assessee was entitled to deduction from its profit level indicator towards capacity underutilisation adjustment. However, the assessee had computed the adjustment presuming that the comparable companies operated at 100 per cent. capacity. The assessee accepted that the adjustment should have been computed considering the details of actual capacity utilisation by comparable companies. Since the details were not available in the public domain, the issue was restored to the Transfer Pricing Officer with the direction to collect the relevant details from comparable companies for the year 2013-14 and accordingly compute the adjustment. The Transfer Pricing Officer was directed to exercise powers under section\u00a0133(6)\u00a0to call for information on capacity utilisation of the comparable companies such as installed capacity, actual production in units, break-up of fixed cost and variable cost, and segmental and product-wise information, if any. After obtaining the information, he was to provide the assessee an opportunity by sharing the details so obtained, and accordingly, grant the adjustment for capacity underutilised.( AY.2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing \u2013 Arm\u2019s length price – Capacity utilisation of comparable – Details not available in public domain \u2014 Remanded to the TPO to call for information and decide the issue [ S.133(6) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14062","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3EO","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14062"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14062\/revisions"}],"predecessor-version":[{"id":14063,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14062\/revisions\/14063"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}