The ITAT held that the Transfer Pricing Officer (TPO) should...

The ITAT held that the Transfer Pricing Officer (TPO) should consider comparables dealing in electronic products only, supported by a technical expert's certificate, while determining the arm's length price for the assessee, a 100% Export Oriented Unit (EOU). The Tribunal directed the TPO to apply filters of export turnover exceeding 75% of total turnover and related party transactions less than 25%. The assessee was also allowed to bring fresh comparables justifying its arm's length price determination, keeping in mind the prescribed filters. The issue of capacity utilization claim denial was remanded to the TPO for consideration while determining the arm's length price. Regarding the disallowance u/s 40A(a) for cash payments exceeding Rs. 20,000/-, the Assessing Officer was directed to examine the issue after providing adequate opportunity to the assessee. The appeals were allowed for statistical purposes with the above directions.