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2018 (6) TMI 452 - HC - Income TaxTPA - Whether profit margin of the comparable should be applied only to the value of the International Transactions - Held that:- this issue stands concluded against the Revenue by the following decisions of this Court in case of CIT v/s. M/s. Ratilal Becharlal & Sons [2015 (11) TMI 1524 - BOMBAY HIGH COURT]. Whether adjustment of capacity utilization factor can be considered even though it is not prescribed u/s 92CA - Held that:- Taking into account the capacity utilization of the comparable, in the present facts, as it materially affects the profit margin, the invocation of Rule 10B (1) (e)(iii) of the Rules, cannot be found fault with This is self evident position from the reading of the aforesaid provision that all aspects/ difference between the international transactions and the comparable uncontrolled transactions which materially affects the net profit margin had to be taken into account so as to have the fair comparison while determining the ALP of the tested party's transaction. No substantial question of law as Rule 10B (1)(e)(iii) of the Rule is self evident Appeal admitted on the substantial question of law at (c) - Whether on the facts and circumstances of the case and in law, the Tribunal was justified in not appreciating that the Assessing Officer had correctly computed the deduction yearwise as per clause (iii) of Explanation 1 to section 115JB of the Act?
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