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2022 (2) TMI 1285 - AT - Income TaxTP Adjustment - Addition on account of transfer of power units - AO made a reference u/s 92C to the TPO for determining the arms length price in respect of specific domestic transaction undertaken by the assessee - HELD THAT:- In our opinion the facts of the issue under consideration are identical to the facts involved for the A.Y. 2013-14 [2021 (9) TMI 1420 - ITAT DELHI] in assessee’s own case wherein held that once there was a direct internal CUP, i.e., the assessee company had purchased electricity from Punjab State Power Corporation at Rs.7.57, then it represents the market rate on which any industry undertaking or consumer is getting the electricity. Thus, we do not find any reason as to why such market rate or CUP should be rejected. Nowhere, it has been brought by the TPO as to why the average trading rate in Indian Energy Exchange should be applied as external CUP. Accordingly, we hold that the sale of electricity @ 6.72 per unit is at Arms’ Length and no adjustment is required in this segment/unit. Addition on account of transfer of steam from eligible unit to non eligible unit - As relying on assessee own case for the A.Y. 2013-14 [2021 (9) TMI 1420 - ITAT DELHI] steam is a form of power eligible for deduction u/s.80IA and same cannot be denied by taking its steam cost at Nil. Further. He has grossly erred in ignoring the audited certificate by Senior Chartered Engineer who is an approved valuer by Income Tax Department and the Cost Accountant appointed by the Central Government without any accounts report, without any agency or expert. Accordingly, for this unit also, we hold that no transfer pricing adjustment is required. Appeal of assessee allowed.
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