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2017 (12) TMI 855 - AT - Income TaxTransfer pricing adjustment - entire transaction of the assessee needs to be taken into consideration for the purpose of transfer pricing adjustment or the TPO and DRP have to confine themselves only to international transaction? - Held that:- For the purpose of transfer pricing adjustment, the transaction of the assessee with Associated Enterprise outside the country alone has to be taken into consideration. The domestic transaction unless it is a Specified Domestic Transaction, cannot be a basis for making any adjustment. See CIT v. Keihin Panalfa Ltd. [2016 (5) TMI 203 - DELHI HIGH COURT] and Alstom Projects India Limited (2016 (12) TMI 1408 - BOMBAY HIGH COURT). This Tribunal is of the considered opinion that under the scheme of the Income-tax Act, the transfer pricing adjustment has to be made only in respect of the transaction of the assessee being a tested party, with Associated Enterprise outside the country after comparing the transaction made by similarly placed company in uncontrolled transaction with non-Associated Enterprise. Therefore, we are unable to uphold the order of the Dispute Resolution Panel Accordingly the order of the DRP is set aside and the entire issue is remitted back to the file of the Assessing Officer. - Decided in favour of assessee for statistical purposes.
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