https://www.taxtmi.com/caselaws?id=358525 Transfer pricing must follow the transaction as actually structured: a bona fide distribution arrangement cannot be re-characterised as a service agreement merely to impose a mark-up on operating cost unless form and substance materially differ. On the stated facts, no such mismatch was found, so the proposed adjustment based on a service characterization was not supportable. Section 92(3) of the Income-tax Act, 1961 is also noted as a statutory bar where a transfer pricing computation would reduce taxable income or increase loss; accordingly, any fresh computation must respect that limitation if the correct characterization is applied. en-us Wed, 11 Apr 2018 00:00:00 +0530 Fri, 13 Apr 2018 08:17:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358525 Transfer pricing must follow the transaction as actually structured: a bona fide distribution arrangement cannot be re-characterised as a service agreement merely to impose a mark-up on operating cost unless form and substance materially differ. On the stated facts, no such mismatch was found, so the proposed adjustment based on a service characterization was not supportable. Section 92(3) of the Income-tax Act, 1961 is also noted as a statutory bar where a transfer pricing computation would reduce taxable income or increase loss; accordingly, any fresh computation must respect that limitation if the correct characterization is applied. Case-Laws Income Tax Wed, 11 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358525