Power Supply Transfer Pricing: ITAT Upholds TPO's Internal Comparable Analysis u/s 92BA Over State Utility Rates.

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....The ITAT ruled against the assessee regarding applicability of section 92BA in a power supply transaction case. The Tribunal held that claiming deduction u/s 80IA is not prerequisite for invoking section 92BA provisions. The assessee's captive thermal plant transactions with related parties required arm's length price determination. The TPO correctly used internal comparables (power supply to 14 independent consumers) rather than state utility rates for benchmarking. The average rate of Rs. 2.97 per unit charged to other units, compared to assessee's transfer price of Rs. 7.85 per unit based on GSEB tariff, demonstrated significant price variation. The ITAT rejected assessee's argument that state electricity board rates should be the benchmark, affirming TPO's use of arithmetic mean from actual third-party transactions.....