Summary
- The Karnataka High Court has upheld the inclusion of Neeman Medical International (Asia) Ltd. as a comparable for Apotex Research Pvt. Ltd.'s transfer pricing assessment, dismissing the Revenue’s appeal.
- The Revenue initially excluded Neeman due to its alleged consistent losses, but the Tribunal found it was not consistently loss-making, a finding the High Court supported.
- The court noted that functional dissimilarity was not previously cited as a reason for exclusion, and the Revenue failed to demonstrate any error in the Tribunal's factual findings.
- This ruling emphasizes the necessity of substantiating grounds for excluding comparables in transfer pricing cases, potentially impacting future assessments and appeals.
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