INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - No adopting any of the methods prescribed under section 92C -

Assessee entered into international transactions with AEs. TPO suggested ALP adjustment as regards thereto, however, without adopting any of the methods prescribed under section 92C.Held: Jurisdiction of TPO is specific and limited, i.e., to determine the ALP of an international transaction in terms of Chapter X of the Act read with rule 10A to 10E. An examination of order of TPO made under section 92CA(3) clearly indicated that while making TP adjustment had not adopted any of the prescribed method. Under section 92C(1) read with rule 10B. Accordingly, ad hoc determination of ALP by TPO de hors section 92C, could not be sustained.

Applied:CIT v. Lever India Exports Ltd. [ITA No. 1306, 1307, 1349 of 2014] : 2017 TaxPub(DT) 590 (Bom-HC), CIT v. Merek Ltd. [ITA No. 272 of 2014], CIT v. Kodak India Pvt. Ltd. [ITA No. 15 of 2014 : 2016 TaxPub(DT) 3872 (Bom-HC) and CIT v. Johnson & Johnson Ltd. [ITA No. 1291 of 2014].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 92C

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