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2023 (7) TMI 139 - HC - Income TaxTP adjustment - benchmarking technique - whether benchmarking should be done only on the associated enterprises transactions or for the entire turnover ? - HELD THAT:- As decided in ALSTOM PROJECTS INDIA LIMITED [2016 (12) TMI 1408 - BOMBAY HIGH COURT], M/S TARA JEWELS EXPORTS PVT. LTD. [2015 (12) TMI 1130 - BOMBAY HIGH COURT], M/S. THYSSEN KRUPP INDUSTRIES INDIA PVT. LTD. [2015 (12) TMI 1076 - BOMBAY HIGH COURT], M/S. HINDUSTAN UNILEVER LTD [2016 (7) TMI 1245 - BOMBAY HIGH COURT] Courts have held that the benchmarking should be done only on the associated enterprises transactions and not for the entire turnover. ITAT was correct in holding that the TP adjustment should be proportionate to the value of international transaction. Proportionate adjustment claim even though the SLP on the similar filed by the Revenue has been admitted by the Hon’ble Supreme Court in the case of Fire Stone International Pvt. Ltd.[2016 (8) TMI 1285 - SC ORDER] - Appeal in case of Firestone International P. Ltd was part of the appeals that was considered in Essar Teleholdings Ltd. [2018 (2) TMI 115 - SUPREME COURT] but what we find from the judgment of the Apex Court Essar Teleholdings Ltd. (supra) is that Revenue in its appeal in Firestone International P. Ltd (supra) has only raised the issue of disallowance under Section 14A and not regarding TP adjustment.2nd issue also cannot be considered as a substantial question of law.
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