Controlled Cant Benchmark Controlled – Pro-Rata Commission TP Struck Down

Honda Trading Corporation India Pvt. Ltd Vs DCIT/ ACIT (ITAT Delhi) ITAT Delhi partly allowed the assessee’s appeal for AY 2021-22 in Honda Trading Corporation India Pvt. Ltd., deleting TP adjustment of ₹2.57 crore on commission paid, while noting that the large trading-segment TP adjustment of ₹11.58 crore already stood rectified to NIL u/s 154. The impugned ₹2.57 crore adjustment arose solely from DRP’s vague direction to “verify” why commission paid on exports (2.05%) was higher than commission received on imports (0.59%). Acting on this, the TPO applied a pro-rata thumb rule,...