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2015 (9) TMI 1518 - HC - Income TaxDisallowance u/s. 14A - Rule 8D applicability - Held that:- Questions stands concluded against the Revenue by the decision of this Court in Godrej & Boyce Manufacturing Co. Ltd. v/s. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ]. TPA - determining its Arms Length Price (ALP) - Respondent had adopted the Comparable Uncontrolled Price (CUP) method - grievance of the Revenue before us is that the impugned order ought to have not disturbed the findings of the TPO and Assessing Officer by adding the DEPB benefits obtained by the Respondent-Assessee to its turnover - Held that:- We find no fault with the order of the Tribunal, comparing the profit margin of the Respondent-Assessee with those of the Comparable companies after adding in the DEPB benefit obtained by it. This was particularly so as the comparison has to be between comparables and the Respondent on a like measure. The contention of the Revenue to ignore the DEPB in case of Respondent-Assessee when the same is taken into account for determining the price of comparables leads to distortion in comparison. On facts, two authorities have come to a concurrent finding of fact that no Transfer Pricing adjustment is called for as the difference between the profit of comparables and Respondent-Assessee is less then 5% i.e. well within the safe harbor Rules. This finding of fact has not been shown to be perverse and/or arbitrary.
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