INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Selection of comparables - Government undertaking v. Private entity

Assessee rendered Marketing and Ancillary Management Support Services to its AE abroad. TPO considered Apitco Ltd. as comparable to assessee's case. Held: Apitco Ltd. being a government enterprises was not comparable with a private business support service provider like assessee because in case of government enterprises profit motive is not relevant consideration, and government companies work for other public sector undertakings and in that sense the related party transactions are much more than the filter of 25%.

Relied:Philip Morris ITA No. 1468 of 2018 judgment, dated 18-12-2018 : 2019 TaxPub(DT) 755 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 92C

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