Ad-hoc determination of ALP by TPO de-hors Section 92C(1) & cannot be sustained

Brinks India Private Limited Vs DCIT (ITAT Mumbai)

Section 92C(1) of the Act, contemplates that the arms length price in relation to an international transaction shall be determined by comparable uncontrolled price method; resale price method; cost plus method; profit split method; transactional net margin method or such other method as may be prescribed by the Board. Hence, the TPO is bound to determine the ALP by following one of the prescribed methods. Any ad-hoc determination of arms length price by the Ld TPO u/s section 92 de-hors section 92C(1) o

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