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of <h1>Appellate Tribunal Upholds Decision on Transfer Pricing Adjustment for Barite Lumps</h1> <h3>Joint Commissioner of Income-Tax (OSD), Central Circle-IV (3), Chennai Versus Trimex Industries (P) Ltd., Chennai</h3> Joint Commissioner of Income-Tax (OSD), Central Circle-IV (3), Chennai Versus Trimex Industries (P) Ltd., Chennai - TMI Issues involved: Transfer pricing adjustment u/s 92CA of the Income-tax Act, 1961.Transfer Pricing of Barite Lumps:- The assessee exported minerals to its Associated Enterprise (AE) and third parties.- The Transfer Pricing Officer (TPO) found discrepancies in the pricing of sales to AE and non-AEs.- The Commissioner of Income-tax(Appeals) noted the differences in pricing but considered them justified due to the nature of transactions.- The TPO's failure to consider the 5% tolerance limit and external price comparisons was highlighted.- The Commissioner of Income-tax(Appeals) deleted the addition of Rs. 1,84,11,785 relating to Barite Lumps, emphasizing the justifiability of the pricing differences.Transfer Pricing of Bentonite Powder:- Discrepancies were found in the pricing of Bentonite Powder sales to a third party and the AE.- The Commissioner of Income-tax(Appeals) noted the volume disparity and occasional nature of the third-party transaction, justifying the pricing differences.- The addition of Rs. 20,73,411 was deleted by the Commissioner of Income-tax(Appeals) as the comparison between third-party and AE sales was deemed unjustified.Judgment:- The Revenue appealed the deletion of the transfer pricing adjustment for Barite Lumps.- The Appellate Tribunal agreed with the Commissioner of Income-tax(Appeals) that the disputed addition was unwarranted.- The Tribunal emphasized the need to consider all risk-taking functions of multinational enterprises, as highlighted by the Supreme Court.- The appeal filed by the Revenue was dismissed, upholding the Commissioner of Income-tax(Appeals) decision.
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