Case Law Details
Brief of the case:
In the case of Eli Lilly & Co. (India) Pvt. Ltd. Vs. ACIT Delhi bench of ITAT have held that as there is no change in the facts for the instant assessment year, the AO/DRP is directed to include EDCIL (the company excluded by TPO) in the final set of comparable companies. ITAT relied upon the decision of ITAT, Mumbai in the case of ACIT vs. NGC Network India (P) Ltd. 10 taxmann.com 140 wherein it was held that These comparables and the method of computation of arm’s length price has been accepted by the department in the subsequent assessment year i.e. 2004-05. Therefore in our view comparables selected by the assessee have to be adopted for the purpose of computation of transfer pricing adjustments this year also.
Facts of the case:
- The assessee is a wholly owned subsidiary of Eli Lilly Netherlands B.V. and engaged in the business of trading of formulations in the domestic market which is purchased from its AE’s and third parties.
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