https://www.taxtmi.com/caselaws?id=188935 In transfer pricing matters, penalty under section 271(1)(c) is not justified merely because a different set of comparables produces a higher arm's length price estimate. Where the assessee applies the Transactional Net Margin Method on the basis of an independent expert study, and the method is accepted as appropriate but the adjustment arises from selection of different comparables, the arm's length price remains an estimate and does not by itself show furnishing of inaccurate particulars. Explanation 7 applies, and penalty is unwarranted when the pricing is adopted in good faith and with due diligence. On these facts, deletion of the penalty was upheld. en-us Fri, 20 Nov 2015 00:00:00 +0530 Wed, 21 Dec 2016 11:55:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188935 In transfer pricing matters, penalty under section 271(1)(c) is not justified merely because a different set of comparables produces a higher arm's length price estimate. Where the assessee applies the Transactional Net Margin Method on the basis of an independent expert study, and the method is accepted as appropriate but the adjustment arises from selection of different comparables, the arm's length price remains an estimate and does not by itself show furnishing of inaccurate particulars. Explanation 7 applies, and penalty is unwarranted when the pricing is adopted in good faith and with due diligence. On these facts, deletion of the penalty was upheld. Case-Laws Income Tax Fri, 20 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188935