TMI Blog2010 (1) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the business of exports - Held that:- All these items are connected with the operations of the assessee, Revenue appeal dismissed. Arm's length price under Transfer Pricing Regulations - AO to grant a reduction of 5% from the arm's length price in view of the proviso to section 92C(2). The learned DR, submitted that in view of the CBDT Circular on the issue, if the variation is less than 5% being arm's length price determined by the TPO and the arm's length price determined by the assessee, no adjustment is called for. Revenue is dismissed - I.T.A. No. 3342/Mum./2006, - - - Dated:- 27-1-2010 - J. Sudhakar Reddy, R.S. Padvekar, JJ. S.S. Rana and R.C. Prasad for the Appellant ORDER J. Sudhakar Reddy, Accountant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 145A the same is to be included as an integral part of the turnover. 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in directing Assessing Officer to not deduct 90% of the receipts by way of Write back suppliers. Write back customers, sales tax refund, provision write back, excise duty and tender fees, as provided for by explanation (baa) while computing the deduction u/s 80HHC without appreciating that the same had no nexus with the business profits derived from the business of exports. 3. On the facts and in the circumstances of the case and in law, the CIT(A) erred in directing the Assessing Officer to give further reduction of 5% of arm's length price in view of proviso to Section 92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll these items are connected with the operations of the assessee. Thus we agree with the findings of the CIT(Appeals) and dismiss ground No.2 of the Revenue. 8. Coming to ground No. 3 which is on the issue of adjustment made to arm's length price under Transfer Pricing Regulations, the grievance of the Revenue is that the CIT(Appeals) directed the AO to grant a reduction of 5% from the arm's length price in view of the proviso to section 92C(2). The learned DR, though not leaving his ground, ultimately submitted that in view of the CBDT Circular on the issue, if the variation is less than 5% being arm's length price determined by the TPO and the arm's length price determined by the assessee, no adjustment is called for. In view of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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