The
provisions of TP regulations applicable for computing income from international
transactions having regard to ALP. If the TPO suggests that the operating profit
declared by an assessee is compatible to ALP norms, the operation of all those
provisions come to an end. AO can not make any other adjustment towards
computing deduction available under sec. 10A using ALP. Under section 10A the
computation has to be made in the context of sec. 10A(7) read with
sec.80IA(10).
It is not justified to adopt ALP profits to
determine what is "ordinary profits" for the purpose of sec. 10A(7)? Therefore,
arm’s length profit cannot be used to determine ‘ordinary profits’ for the
purpose of Section 10A(7) of the Act -The decision in the case of Tweezerman
(India) Pvt Ltd followed.
Visual Graphics Versus Assistant Commissioner of Income-tax, Company circle -
III (4)
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