Transfer pricing – Internal comparability to be given preference over external comparables

Destination of the World (Subcontinent) Pvt. Ltd. Vs Asst. CIT (ITAT Delhi) The Tribunal held that in the first instance, the attempt should be made to determine arm’s length price of controlled transactions by comparing the same with internal uncontrolled transactions undertaken in same or similar economic scenario. The Tribunal relied on the following in arriving at this conclusion.

OECD Transfer Pricing Guidelines in paragraph 3.26 suggest preference for internal comparable, and suggest use of externa

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