https://www.taxtmi.com/caselaws?id=757731 Section 92(3) of the Income-tax Act bars an arm's length price adjustment where applying the transfer pricing analysis would reduce the assessee's chargeable income or increase its loss. Here, the proposed adjustment to intra-group services was inseparable from the assessee's cost-plus model for IT-enabled services: lowering the arm's length price of the intra-group services would also reduce the revenue from the main services by a greater amount because the markup on cost would fall. On those facts, the adjustment would lower income computed from the books, so section 92(3) prevented its application. The arm's length price adjustment was therefore not warranted, and the challenge to the Tribunal's view failed. en-us Thu, 14 Mar 2024 00:00:00 +0530 Thu, 16 Jul 2026 16:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757731 Section 92(3) of the Income-tax Act bars an arm's length price adjustment where applying the transfer pricing analysis would reduce the assessee's chargeable income or increase its loss. Here, the proposed adjustment to intra-group services was inseparable from the assessee's cost-plus model for IT-enabled services: lowering the arm's length price of the intra-group services would also reduce the revenue from the main services by a greater amount because the markup on cost would fall. On those facts, the adjustment would lower income computed from the books, so section 92(3) prevented its application. The arm's length price adjustment was therefore not warranted, and the challenge to the Tribunal's view failed. Case-Laws Income Tax Thu, 14 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757731