The Assessing Officer made transfer pricing adjustment to the assessee’s international transactions. The Tribunal restricted the adjustment only on international transactions where the assessee had selected TNMM and ap-plied the same on entity level.On appeal, the revenue submitted that the presumption underlying arm’s length principle was that uncontrolled transactions were at arm’s length. and therefore, if the overall margins were less than arm’s length margins, the shortfall must be on account of AE transactions only and not on pro rata basis.The decisions of the Co-ordinate Bench hold that benchmarking should be done only on associated enterprise or related party transactions and not with respect to the entire turnover. Order of Tribunal affirmed.\u00a0\u00a0 (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arms\u2019 length price-Avoidance of tax -International transaction-TNMM- While determining ALP of international transactions, benchmarking should be done only on associated enterprise or related party transactions and not with respect to entire turnover.[S. 260A] <\/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-59033","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fm9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59033","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=59033"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59033\/revisions"}],"predecessor-version":[{"id":59034,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59033\/revisions\/59034"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}