Comparable cannot be excluded in Absence of Persistent Losses: ITAT Delhi

Honda R & D (India) P. Ltd. Vs Additional/Joint/Deputy/ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi recently addressed the case of Honda R&D (India) P. Ltd. versus the Additional/Joint/Deputy/ACIT, focusing on the inclusion of Magma Advisory Services Ltd. in the list of comparable companies for transfer pricing purposes. The dispute centered on the Transfer Pricing Officer’s (TPO) decision to exclude Magma, based on its reported “peculiar economic circumstances,” specifically persistent negative cash flow as stated in its annual report. However, the IT...