Discuss whether an adjustment is required in the context of transfer pricing provisions where the transfer price adopted for an international transaction on the sale of goods by an Indian company during the financial year 2021-22, is Rs. 25 lakhs whilst the Arm’s Length Price determined using the appropriate method are Rs. 25 lakhs and Rs. 27 lakhs. Assume that the rate of permissible variation prescribed by the Central Government is 3% of the transfer price for this class of international transaction.

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