https://www.taxtmi.com/caselaws?id=245990 Transfer pricing provisions under Chapter X can apply to international transactions even where the assessee's business income is exempt under section 10A, because the statutory purpose is to prevent understatement of income taxable in India. However, if the international transaction relates to income that is itself exempt in India, there is no underreporting of taxable income on that basis. On the stated facts, the assessee had not disclosed excess exempt income, so no arm's length adjustment was warranted and the returned income was accepted. en-us Tue, 25 Mar 2014 00:00:00 +0530 Wed, 18 Mar 2015 15:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=245990 Transfer pricing provisions under Chapter X can apply to international transactions even where the assessee's business income is exempt under section 10A, because the statutory purpose is to prevent understatement of income taxable in India. However, if the international transaction relates to income that is itself exempt in India, there is no underreporting of taxable income on that basis. On the stated facts, the assessee had not disclosed excess exempt income, so no arm's length adjustment was warranted and the returned income was accepted. Case-Laws Income Tax Tue, 25 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=245990