ALP not to be tested with growth in business rather by applying suitable method to transaction itself

CA Saurabh Chokhra Brief of the case: The ITAT Delhi in the above cited case held that as to whether a transaction is entered into at an Arm’s Length Price or not must depend upon the facts of each case relating to the transaction per-se i.e. the transaction itself as the profit is only a possibility of the desired result with or without the aid of international transaction. Therefore, the test of ALP should be applied to transaction only  by applying the suitable transfer pricing determination method which would again depend on the nature of the activities involved, assets used, and risk...