Transfer Pricing: If foreign AE pays more tax, motive to shift profit unlikely: ITAT Mumbai

DCIT Vs. Indo American Jewellery (ITAT Mumbai):- Assessee’s TP study cannot be rejected lightly, “com parables” have to be comparable on all parameters, no incentive to shift profits offshore if tax rates there are higher The assessee, engaged in the business of manufacture and export of plain and studded jewellery of gold, platinum etc, entered into international transactions with four AEs. The assessee adopted the Transactional Net Margin Method (“TNNM”) and argued that the transactions were at arms’ length on the basis that its operating profit margin was 3.56% on sales and 3.70...