Income Tax and Transfer Pricing

Income Tax and Transfer Pricing 

It has been held in CIT v. Cushman and Wakefield [2014] GCtR 6125 (Delhi) that the authority of the TPO is to conduct a transfer pricing analysis to determine the ALP and not to determine whether there is a service or not from which the assessee benefits. That aspect of the exercise is left to the AO. The TPO’s Report is, subsequent to the Finance Act, 2007, binding on the AO. S.92 of Income-tax Act, 1961 creates a regime for determining the true value of a transaction between 2 related parties.