Transfer pricing regulations introduced via Chapter X in 2002, clearly provide that, the chapter is introduced to “Check Avoidance of Tax”. Further, Sec 92 (3), provides that “The provisions of this section shall not apply in a case where the computation of income .has the effect of reducing the income chargeable to tax or increasing the loss”. The fundamental premise being, transfer pricing provisions need to augment revenue and never, even accidentally, benefit the assesses.
