Sec. 92A of Income-tax Act, 1961— Transfer pricing – The assessee is an Indian company and 99.9 per cent of its shareholding is held by a person by the name of GK. The assessee had certain business transactions, which admittedly fall in the definition of ‘international transactions’, with a Singapore based entity KE-S. According to the AO, the provisions of s. 92A are required to be read on standalone basis rather than in conjunction with s. 92A(2). The assessee and KE-S were held to be AEs. Aggrieved, assessee carried the matter in appeal before the CIT(A) but without any success. Tribunal allowed the appeal of the assessee holding that ”s. 92A(1) cannot be applied on standalone basis, and has to be essentially considered in conjunction of s. 92A(2)–only when it satisfies at least one of the conditions set out therein. The relationship between the assessee and the KE-S was not of the AEs, and, accordingly, no ALP adjustments could be made on the transactions between these two entities“. - KAYBEE (P) LTD. V/s ITO - [2020] 204 TTJ 921 (ITAT-MUMBAI)