Hi
This is regarding the interpreation of Section 92 C (2) which states the provision of availability of adjustment of 5% margin from the determined Arm's Length Price, it states
"Provided that where more than ONE price is determined by the most appropriate method, the arm's length price shall be taken to be the arithmetical mean of such prices, or at the option of the asseee, a price which may vary from the Arithmetical mean by an amount not exceeding FIVE per cent of such arthimetical mean."
Does the interpreation of " where more than ONE price is determined"
- Does it mean that more than one comaparable companies in the list of companies selected?
- Does it mean that more than one method of TP study has been done? (As there are many ITAT Decision on which this provisio were given even if single TP method is adopted)
My main query is whether this provision of adjustment of 5% would be available even if I have only one comparable companies available with me ? Please refer any case law or decision passed on this.
Many thanks in advance
Regards
Ramesh
