Shanti Prime Publication Pvt. Ltd.
Sec. 92C of Income Tax Act, 1961—Transfer Pricing— While there are no specific powers vested in the TPO to recharacterize the transaction, even under the judge made law, such rechracterization can be done by the revenue authorities when the transactions are found to be substantially at variance with the stated form and in the case of assessee, there cannot even a suggestion to hold that this is a bogus transaction because admittedly the subscribed shares capital has indeed been allotted to the assessee, the transaction is thus accepted to be genuine in effect, thus, ALP adjustment based on hypothesis was indeed devoid of legally sustainable merits. - VOLTAS LTD. V/s ASSTT. CIT -  183 ITD 857 (ITAT-MUMBAI)