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| The Tax Publishers2020 TaxPub(DT) 4931 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
Even in independent business situations granting discount is a normal occurrence, and unless AO demonstrated that discount so allowed to AE would not have been allowed in an arm's length situation, ALP adjustment could not be made in respect of the same.
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Transfer pricing - Determination of ALP - Discount allowed to AE treated as excessive without even suggesting that discount was not arm's length or discounts not allowed under any other situations -
Assessee rendered certain services to its AE termed as field services and received an amount of Rs. 58,07,858 after providing discount @ 15%. TPO, while determining ALP of such services rendered to AE held that discount allowed was not at arm's length and accordingly made TP adjustment. Held: Even in independent business situations granting discount is a normal occurrence, and unless AO demonstrated that discount so allowed to AE would not have been allowed in an arm's length situation, ALP adjustment could not be made in respect of the same.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 32(1)
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