Transfer Pricing: Important Principles on scope, data & comparability set out

Genisys Integrating Systems vs. DCIT (ITAT Bangalore)

In a transfer pricing matter, the Tribunal had to consider the following issues (i) whether transfer pricing adjustments have to be restricted to AE transactions only, (ii) whether a turnover filter can be applied and only companies with turnover within the range can be considered for comparison; (iii) whether the TPO is entitled to collect information u/s 133(6) for determining the ALP or he is confined to data available in public domain on the specified date, (iv) Whether the +/-5% adjustment is a “standard deduction”, (v) whether an adjustment to the ALP can be made for “low capacity utilization”? HELD by the Tribunal: