Adjustment in transfer price on sole criteria of extraordinary profit unjustified

DCIT Vs Deepak Industries Ltd. (ITAT Kolkata) Held that mere extraordinary profit cannot be criteria for adjustment in the transfer price Facts- The assessee has three manufacturing units at Kolkata, Faridabad, and Rudrapur. The unit at Rudrapur eligible for deduction u/s 80IC. The assessee had specified domestic transactions between two units during the year and accordingly the AO referred the matter to TPO after obtaining due approval from PCIT for determining ALP. The TPO passed an order u/s 92CA(3) proposing ALP adjustment of Rs. 12,06,40,000/-by rejecting Cost Plus Method followed by the ...