Transfer Pricing – Prior Years’ data cannot generally be relied upon to justify Arms Length Price

Summary of Findings:-

•  The OECD guidelines are not of binding nature and even the Proviso to Rule 10B (4) provides that any subsequent year data cannot be considered. The contemporaneous data of relevant financial year is to be used for making the comparable analysis for arriving at the ALP unless it is proved otherwise

• For arriving at the net margin of operating income, only operating income and operating expenses for the relevant business activity of the assessee are to be taken i

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