ITAT allowed the taxpayer's challenge to part of the transfer...

ITAT allowed the taxpayer's challenge to part of the transfer pricing adjustment under s.92C, directing the TPO to exclude two large group entities from the comparable set as non-comparable due to disproportionate turnover and distinctive brand-derived market advantages, and to recompute the ALP shortfall accordingly. The Tribunal affirmed the DRP's exclusion of several comparables that never featured in the TPO's search/accept-reject matrix, finding such inclusion would amount to impermissible cherry-picking. The Tribunal upheld the TPO's retention of another comparable on margin grounds and rejected the assessee's merger-impact contention. The AO was directed to verify and apply statutory set-off of current year losses when computing taxable income.