Section 92 C of the Income Tax Act, 1961 – Transfer Pricing – Computation of ALP – Provisions of transfer pricing regulations are not applicable to the assessee to the extent of operation carried by assessee through qualifying ships which is covered by Tonnage Tax Scheme.
Facts: The grievance of the assessee relates to transfer pricing adjustment of Rs. 55,48,550/- in respect of interest on purchase price of two ships.

Held, that the provisions of transfer pricing regulations are not applicable to the assessee to the extent of operation carried by assessee through qualifying ships which is covered by Tonnage Tax Scheme. Thus, we hold that the grounds of appeal are covered in favour of the assessee and against the revenue. Thus, we do not find any justification for the addition made by the A.O. in respect of interest on purchase price of two ships. Accordingly, we direct the A.O. to delete the same – ESSAR SHIPPING LTD. [2020] 79 ITR (TRIB) 555 (ITAT-MUMBAI)