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| The Tax Publishers2019 TaxPub(DT) 5328 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
Duty of TPO was restricted only to determination of ALP of international transaction between two related parties by applying any of the methods prescribed under section 92C read with rule 10B. There is no provision made in statute empowering TPO for determining ALP of a particular international transaction on estimation basis/ad hoc basis. Accordingly, TP adjustment was deleted.
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Transfer pricing - Determination of ALP - Estimation/ad hoc basis without applying any of the prescribed methods -
Assessee made payment to its AE abroad towards GIS and MSF services. TPO without applying any method, determined ALP at nil for GIS services and accepted 20%. of payment made towards MSF services as ALP thereof.Held: Duty of TPO was restricted only to determination of ALP of international transaction between two related parties by applying any of the methods prescribed under section 92C read with rule 10B. There is no provision made in statute empowering TPO for determining ALP of a particular international transaction on estimation basis/ad hoc basis. Accordingly, TP adjustment was deleted.
Followed:CIT v. Johnson & Johnson Ltd. (2017) 80 Taxmann.com 337 (Bom) : 2017 TaxPub(DT) 1277 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 143(3)
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