https://www.taxtmi.com/caselaws?id=305704 In transfer pricing benchmarking under TNMM, companies are excluded from comparables only if they are persistent loss makers, meaning losses in three consecutive financial years including the relevant year and the two preceding years. Mere isolated or intermittent losses in one or two years do not satisfy that test. On the facts noted, one company had a loss in only one year and the other two had losses in two years, so none met the persistent-loss criterion. The three companies were therefore treated as comparable, and the proposed transfer pricing adjustment based on their exclusion did not survive. en-us Fri, 31 Jul 2020 00:00:00 +0530 Tue, 20 Dec 2022 23:11:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=305704 In transfer pricing benchmarking under TNMM, companies are excluded from comparables only if they are persistent loss makers, meaning losses in three consecutive financial years including the relevant year and the two preceding years. Mere isolated or intermittent losses in one or two years do not satisfy that test. On the facts noted, one company had a loss in only one year and the other two had losses in two years, so none met the persistent-loss criterion. The three companies were therefore treated as comparable, and the proposed transfer pricing adjustment based on their exclusion did not survive. Case-Laws Income Tax Fri, 31 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=305704