The Tax Publishers2021 TaxPub(DT) 3833 (Pune-Trib)

INCOME TAX ACT, 1961

Section 92C

As there was no difference in customs duty rate paid by assessee and its comparables, there could be no question of allowing any reduction in the profit margins of comparables on this score simply because assessee's percentage of import to total materials purchased was higher than that of comparables.

Transfer pricing - Determination of ALP - Comparables and adjustment - Assessee sought for removal of the effect of excess customs duty paid on imports by it vis-a-vis the comparables

Assessee, engaged in the manufacture and distribution of heavy earthmoving equipments and parts, entered into international transaction with its AE. Assessee sought for removal of the effect of excess custom duty paid on imports by it vis-a-vis the comparables. Held: Admittedly, there was no difference in customs duty rate paid by assessee and its comparables, there could be no question of allowing any reduction in the profit margins of comparables on this score simply because assessee's percentage of import to total materials purchased was higher than that of comparables.

REFERRED :

FAVOUR : In assessee'sfavour.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 92C

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