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2011 (7) TMI 154 - AT - Income TaxArm's-Length Price (ALP) - Assessing Officer referred the question of determining the Arm's-Length Price (ALP) to the TPO on the basis of this relationship and the quantum of transactions that had taken place between the assessee-company and its AE - TPO has identified a typical transaction fit for comparison in uncontrolled market conditions - There is a striking difference in the price quoted by the assessee and M/s. Adam & Coal Resources (P.) Ltd whether this price variation noticed by the TPO should be taken as the basis for making adjustment in the transfer pricing - assessee has not furnished any details on the calorific value of the coal imported by the assessee-company from its AE - The CUP method as construed in the statute has to be applied in the present case. When it is so applied, we find that the import of coal made by the assessee from its AE has been over-invoiced Regarding quantification of the adjustment - TPO has worked out the adjustment amount exactly on the basis of price variation between the companies. This is the most simple and acceptable method - Decided against the assessee
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