2018 (7) TMI 485

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....amed by the Revenue in the Memorandum of Appeal is as under: "Whether on the facts and in the circumstances of the case, the Tribunal is right in applying first and second proviso of Section 92C of the Act and allowing +/- 5% range in the case where there is only one reference rate of RBI as a benchmarking rate for determining Arms' Length Price and Tribunal cannot go into issue as to how RBI decides a reference rate of price of a currency which was not an issue before Tribunal?" 3. The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and Respondent-Assessee, has returned a finding as under: "05. We have perused the orders and heard the rival contentions. Question before us is whether second provi....

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....ogy of polling so as to ensure that the reference rate is a true reflection of the market activity. G.Raghuraj Deputy General Manger Press Release : 2008-2009/163" It is clear from the above that the RBI rates of foreign exchange were also based on averaging. Therefore in our opinion, the principle evolving out of the decision of coordinate bench of Mumbai in Development Bank of Singapore (supra) will apply here as well. Assessee was therefore well justified in claiming the benefit available to it under proviso to section 92C(3) of the Act. DRP, in our opinion, was justified in holding that assessee's prices were within +/- 5% range of the RBI rates and therefore there was no necessity for transfer pricing adjustment." 4. The controv....