Held that the assessee, while computing the profit margin, claimed reduction from DTA unit and EOU unit out of the total raw material purchases from associated enterprise as economic adjustment. As the DTA unit was an old unit and already in existence, the claim of adjustments sought by the assessee in computing the profit margin by adopting the transactional net margin method was rejected and the Transfer Pricing Officer\u2019s adjustment was upheld. Held \u00a0that the Transfer Pricing Officer had already made adjustment on account of the assessee\u2019s purchase of raw material from its associated enterprise by determining the arm\u2019s length price against the actual price paid by the assessee to its associated enterprise. The abnormal cost was included in the actual cost for which the Transfer Pricing Officer had already made adjustment applying the transactional net margin method by taking a profit level indicator of 10.59 per cent. against the assessee\u2019s profit level indicator of-8.06 per cent. Further, adjustment of cost by recategorisation as income and making adjustment under transfer pricing was not per the principle of transfer pricing. Therefore, the transfer pricing adjustment is\u00a0 deleted. (AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Avoidance of tax-
\nInternational transaction-Transactional Net Margin Method-Purchase of raw materials-Adjustment upheld-Adjustments to profit margin by transactional net margin method rejected-Defective material supply-Abnormal cost included in actual cost-further adjustment of cost by re categorisation as income not per principle of transfer pricing-Transfer pricing adjustment deleted.[S.92CA] <\/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-52000","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dwI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52000","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=52000"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52000\/revisions"}],"predecessor-version":[{"id":52001,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52000\/revisions\/52001"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}