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TMI Blog2012 (10) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... - in favour of assessee for statistical purposes. Benefit of 5% margin u/s 92C(2) in determining the Arm's Length Price denied - Held that:- The Finance Act, 2012 with the insertion of sub-section (2A) to section 92C with retrospective effect has been made clear that where the variation between arithmetical mean and price at which the transaction has actually been undertaken exceeds 5% of arithmetical mean, the assessee shall not be entitled to exercise the option. Thus in view of this amendment to section 92C the CIT(A) was justified in not granting standard adjustment of 5% - against assessee. - IT APPEAL NO. 2444 (MUM.) OF 2007 - - - Dated:- 26-9-2012 - R.S. SYAL AND AMIT SHUKLA, JJ. ORDER R.S. Syal, Accountant Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's contention. He, therefore, made the addition. The learned CIT(A) upheld the addition so made by the Assessing Officer. 4. Having heard both sides and perused the relevant material on record it is observed that the assessment year under consideration is 2003-04. Section 145A has been made applicable w.e.f. the A.Y. 1999-2000. This section provides that the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be in accordance with the method of accounting regularly employed by the assessee and further adjusted to include the amount of any tax, duty, cess etc. paid or incurred by the assessee to bring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appellate authority that the TPO ought to have allowed standard adjustment of 5% before making addition as per proviso to section 92C(2). The learned CIT(A) rejected this contention by holding that since the ALP exceeded the price declared by the assessee by more than 5%, the entire excess was liable to be added. It is this direction of the learned CIT(A) against which the assessee has come up in appeal before us. 6. After considering the rival submissions and perusing the relevant material on record, we find that the dispute about the question as to whether plus minus 5% standard adjustment should be allowed while determining the ALP or the entire amount representing difference between ALP and the declared price should be added wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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