https://www.taxtmi.com/caselaws?id=328202 Functional comparability, not a single year's profit or loss, governs the selection of comparables in transfer pricing analysis. The Tribunal held that a loss-making company cannot be excluded merely because it reported a loss if it is otherwise functionally similar to the tested party. It also noted that the same entity had been accepted by the Revenue in earlier and subsequent years, supporting its comparability. On that basis, ICRA Management Consulting Services Ltd. was wrongly excluded from the comparable set, and the assessee's margin would have fallen within the permissible range if it were included. The transfer pricing adjustment was therefore unsustainable and was deleted in favour of the assessee. en-us Wed, 13 Apr 2016 00:00:00 +0530 Fri, 27 May 2016 17:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328202 Functional comparability, not a single year's profit or loss, governs the selection of comparables in transfer pricing analysis. The Tribunal held that a loss-making company cannot be excluded merely because it reported a loss if it is otherwise functionally similar to the tested party. It also noted that the same entity had been accepted by the Revenue in earlier and subsequent years, supporting its comparability. On that basis, ICRA Management Consulting Services Ltd. was wrongly excluded from the comparable set, and the assessee's margin would have fallen within the permissible range if it were included. The transfer pricing adjustment was therefore unsustainable and was deleted in favour of the assessee. Case-Laws Income Tax Wed, 13 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328202