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TMI Blog2012 (11) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... -2010 under section 92CA of the Income-tax Act, 1961. Directions of the Dispute Resolution Panel at Chennai are dated 8-9-2011 in the proceedings concluded under section 144C(5) of the Income-tax Act, 1961. 2. The assessee is a hundred per cent exporter of computer software. Transactions were entered into with Associated Enterprise overseas and as such the matter was destined under the jurisdiction of transfer pricing regime. The Transfer Pricing Officer, after making an analysis of the transfer pricing study reported by the assessee, worked out an incremental adjustment of Rs. 5.84 crores to the income returned by the assessee as Arm's Length Price (ALP) adjustment. The Dispute Resolution Panel (DRP) upheld the upward revision made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- 5% range mentioned in the proviso to section 92C(2)." 4. The assessee has also raised grounds relating to additions made under section 14A, disallowance made under section 10A and also contention against the rate of depreciation adopted by the assessing authority on UPS and further grounds against levy of interest under section 234B of the Act. 5. We heard Shri H. Padamchand Khincha, the learned chartered accountant appearing for the assessee-company and Shri Shaji P Jacob, the learned Commissioner of Income-tax appearing for the Revenue. 6. Ongoing through the orders of the lower authorities and the submissions made by the learned chartered accountant appearing for the assessee, we find that the transfer pricing analysis has been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as well. An agreement, arrived at on the basis of incorrect premises between the contending parties, does not determine the legality or otherwise of the course of action opted by them. The course of action must be determined strictly on the basis of the words of the statute and not by the consensus of the contending parties. 9. Therefore, the fact that the authorities below also have by and large made the voyage over internal comparables is not a reason for us to accept the contention of the assessee that the internal comparables relied on by the assessee are unbiased. 10. At the end, there could be a chance that internal comparables might still hold good in assessee's case. But that should be the result of a lawful enquiry made on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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