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2016 (11) TMI 383 - ITAT MUMBAITransfer pricing adjustment - TPO while passing the transfer pricing order has applied entity level benchmark - Held that:- DRP has followed the Tribunal’s order in assessee’s own case for the AY 2006-07 and 2008-09 while granting the relief, wherein, it has been directed that TPO should consider the segmental evidence submitted by the assessee. Since the operating margin is based on audited segmental financials submitted by the assessee, wherein, the assessee has earned and shown profit margin at 7.81% as against margin earned by the comparable companies of 8.3% as computed by the TPO himself in pursuance of DRP’s direction which falls within the Arm’s length price range of ± 5%. In any case, also even if entity level margins of 6.47% and the margin earned by the comparable companies at 8.3% (as per the DRP’s direction) is taken into consideration, the ld counsel before us has pointed out that, then also it falls within the variation of +/- 5%.
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