top of page
Writer's pictureMukul gupta

Transfer Pricing Adjustment should be Restricted only to AE Related Transactions of Assessee: ITAT .



The Income Tax Appellate Tribunal (ITAT), Bangalore bench has held that the transfer pricing adjustment shall be restricted only to AE related transactions of the assessee.


The assessee is a subsidiary of the Tokai Rika Company Ltd, based in Japan. The assessee is mainly engaged in manufacturing key sets and locks to automotive industry. The assessee has manufacturing facility. The Assessee contended that section 92 of the Act can be applied only in respect of international transactions i.e., transactions with AE.


The bench comprising Shri George George K, JM & Ms.Padmavathy S, AM has observed that the ITAT in the case of Continental Automotive Components India Private Limited wherein it was held that the TP adjustment should be restricted only to international transactions pertaining to purchase of raw materials from AEs and other related transactions only. With these observations, we allow this ground of the assessee.


“In view of the transfer pricing provisions and various judicial precedents, we hold that the transfer pricing adjustment should be restricted only to the AE related transactions of the assessee,” the Tribunal said.



1 view0 comments

Kommentare


bottom of page