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Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments/Adjustments - General) - Assessment year 2006-07 - Assessee was engaged in business of import and export to its AE - TP addition was made in hands of assessee on basis of entire turnover - Commissioner (Appeals) held that T.P. addition had to be restricted only to transactions with AEs - Further, Tribunal deleted that addition being within +/- 5 per cent variation under section 92C - Whether said decision being factual determination of ALP needed no interference - Held, yes [Para 4] [In favour of assessee] FACTS â–  The assessee was engaged in import and export of polished diamonds to its AEs. â–  Transfer pricing Officer determined ALP and made TP addition on the basis of the entire turnover of the assessee. â–  The Commissioner (Appeals) held that the addition could not be on the entire turnover of the assessee but had to be restricted only to transactions with AEs. â–  The Tribunal noticed that addition was within the +/- 5 per cent range and deleted the addition. â–  On appeal: HELD â–  The decision of the Tribunal is a factual determination of the ALP and the same is found within +/- 5 per cent safe harbour range. This is not shown to be perverse and/or arbitrary. Accordingly, no occasion to entertain said question can arise as it does not give rise to any substantial question of law. [Para 4] CASE REVIEW Dy. CIT v. Firestone International (P.) Ltd. [2013] 33 taxmann.com 478/[2014] 150 ITD 151 (Mum. - Trib.) (para 4) affirmed. CASES REFERRED TO Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010] 328 ITR 81/194 Taxman 203 (Bom.) (para 5). ORDER 1. This Appeal under Section 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 9th November, 2012 passed by the Income Tax Appellate Tribunal (the Tribunal) for the Assessment Year 2006-07. 2. The Revenue has urged the following questions of law for our consideration:- "(a) Whether, on the facts and in the circumstances of the case and in law, the Tribunal is justified in restricting the adjustment only on international transactions where the…

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