https://www.taxtmi.com/caselaws?id=278455 Under TNMM, comparability depends on functional similarity as well as similarity in business model, assets employed, risks assumed and operating environment. Government companies and public sector undertakings with policy-driven control, government support and materially different functions were found unsuitable as comparables for a captive provider of low-risk business support services on a cost-plus basis. Applying Rule 10B(2) of the Income-tax Rules, 1962, the analysis concluded that such entities do not stand on the same platform as the tested party and therefore cannot reliably benchmark its international transaction. The disputed government-owned entities were excluded from the final comparables set, and the transfer pricing adjustment based on them could not be sustained. en-us Tue, 30 Oct 2018 00:00:00 +0530 Tue, 18 Apr 2023 13:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278455 Under TNMM, comparability depends on functional similarity as well as similarity in business model, assets employed, risks assumed and operating environment. Government companies and public sector undertakings with policy-driven control, government support and materially different functions were found unsuitable as comparables for a captive provider of low-risk business support services on a cost-plus basis. Applying Rule 10B(2) of the Income-tax Rules, 1962, the analysis concluded that such entities do not stand on the same platform as the tested party and therefore cannot reliably benchmark its international transaction. The disputed government-owned entities were excluded from the final comparables set, and the transfer pricing adjustment based on them could not be sustained. Case-Laws Income Tax Tue, 30 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278455