Case Law Details
Brief of the case:
Punjab & Haryana High Court held in CIT Vs DSM Anti Infectives India ltd that the benchmark comparable which was used to compare with the comparable company that should be considered only of that year of which TP case was involved. In other words if any comparable point which was used in comparing with the comparable company for international transactions did not remain comparable point in any other year then, it did not mean that that company did not remain comparable anymore for that particular year. Moreover the percentage of the raw material of total sales consumed by the benchmark company was not to be considered. Only the filters had to be fulfilled, quantum of filter was not required to be fulfilled.
Facts of the case:
The ld. Tribunal had considered the company Torrent Gujarat Biotech Limited a company to be comparable company because all the parameters were fulfilled which AO decided for the company to be comparable for international transactions. Net Worth was also one of the filters adopted by the AO to make the company benchmark but assesse was of the view that in the next year of the A.Y of which the above case belongs, the net worth of that comparable company was negative so it did not remain comparable anymore.
Contention of the assesse:
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