Transfer pricing comparables: a company with restructuring and brand-driven profits can be excluded as non-comparable.

A comparable may be excluded in transfer pricing analysis where abnormal profitability is driven by extraordinary factors such as restructuring, strong brand presence, and materially different turnover, because those features can distort reliability on a market basis. On that basis, the Tribunal's exclusion of Wipro Technology Services Limited as a comparable for arm's length price determination was upheld, and no substantial question of law arose.

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Issues: Whether Wipro Technology Services Limited was rightly excluded as a comparable while determining the Arm's Length Price.

Analysis: The exclusion of a comparable was found justified where the entity had abnormally high profits, a large turnover, strong brand presence, and had undergone restructuring that materially affected its profitability. Such factors were treated as relevant grounds for rejecting the comparable in transfer pricing analysis, and the Tribunal's approach was held to be reasonable.

Conclusion: The exclusion of Wipro Technology Services Limited as a comparable was upheld and no substantial question of law arose.

Ratio Decidendi: A comparable may be excluded in transfer pricing analysis where extraordinary circumstances, including restructuring and strong brand-related advantages, materially distort its profitability and make it non-comparable on a reliable market basis.

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