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2018 (9) TMI 79 - BOMBAY HIGH COURTTransfer pricing adjustment - brokerage was charged at the lower rate - as the parent company was held to be involved in directional trade and the brokerage is calculated at the rate that is prevalent in the market, that is 0.25 for cash market and 0.05 for futures - Held that:- It is undisputed that it gave certain instructions and in the event the transaction is an international transaction, then, all the relevant provisions of the IT Act would be applicable. The instructions were issued by the Central Board of Direct Taxes (CBDT). The factual finding in this case is that, given the nature of the transaction, these instructions were applicable. If they were applicable, then, there ought to be some solid ground for ignoring a mandate flowing therefrom. The mandate is that the Assessing Officer should make a reference to the Transfer Pricing Officer. That is to make the transfer pricing adjustment. In this case, no such reference was made despite the facts warranting so. There is no acceptable or justifiable reason on record for refusing to abide by this condition in the CBDT circular. Once the circular goes unchallenged and binds the Revenue, then, in the absence of all this, the Tribunal held that the Assessing Officer's order cannot be sustained. He could not have proceeded to make the transfer pricing adjustment.
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