Avinash Enterprises sold a machine to Bimlesh LLP (Associated Enterprises) at sale margin of 25% for ₹ 4,00,000 which was actually to be sold to Chetan Enterprises. Bimlesh LLP, after receipt of machine, has incurred amo

CS Executive · Tax Laws and Practice · PYQS · June 2018
Avinash Enterprises sold a machine to Bimlesh LLP (Associated Enterprises) at sale margin of 25% for ₹ 4,00,000 which was actually to be sold to Chetan Enterprises. Bimlesh LLP, after receipt of machine, has incurred amount of ₹ 10,000 in sending the same to Chetan Enterprises. The arm's length price of the transaction is:
(A) ₹ 3,00,000
(B) ₹ 4,10,000
(C) ₹ 2,90,000
(D) Insufficient information

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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