ITAT upheld Application of controlled transaction in specific circumstances

Bayer Material Science Private Limited Vs Additional CIT (ITAT Mumbai) Facts of the case: The taxpayer is engaged in the business of manufacturing, trading and indenting of chemical products. The taxpayer had clubbed the trading and indenting activity for the purpose of benchmarking. However, since the functions, assets employed and risks undertaken in indenting business are completely different from trading, the Transfer Pricing Officer (“TPO”) held that both the activities should be benchmarked separately and asked the taxpayer to furnish segmental accounts for the same. The taxpayer ha...