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2011 (9) TMI 589 - ITAT, BANGALORETransfer Pricing - Determination of Arm Length Price -Cost allocated to different segments on the basis of sales revenue - Held That:- Cost allocation to various products and segments is a highly skilled task and it can be complied by only following the principles of cost accountancy. Financial accountancy only records the financial transaction occurred during the previous year in the books of accounts in a prescribed manner, whereas books of accounts pertaining to cost accountancy picks up the financial transaction from the financial books of accounts and allocates it to the various cost centers in the organization and thereby determines the cost of production/service for each product/segment. - As TPO didnot examined all records. - Appeal allowed for statistical purpose only.
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