https://www.taxtmi.com/caselaws?id=775235 ITAT DELHI ruled in favor of the assessee pharmaceutical distributor regarding TP adjustments. The TPO sought to re-characterize expense recoveries from AEs as business support services requiring markup. The assessee recovered expenses from AEs on actual cost basis without markup through debit notes inadvertently labeled as business support services. ITAT held that despite the labeling, the nil markup clearly indicated mere expense reimbursement rather than service provision. The agreement entitled assessee to markup for actual business support services, which was absent here. Additionally, even if re-characterized as business support services, the revised markup of 10.18% would fall within the arms length range of 4.03%-14.23%. ITAT concluded no TP adjustment was warranted and decided in favor of the assessee. en-us Fri, 18 Jul 2025 00:00:00 +0530 Mon, 21 Jul 2025 11:04:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775235 ITAT DELHI ruled in favor of the assessee pharmaceutical distributor regarding TP adjustments. The TPO sought to re-characterize expense recoveries from AEs as business support services requiring markup. The assessee recovered expenses from AEs on actual cost basis without markup through debit notes inadvertently labeled as business support services. ITAT held that despite the labeling, the nil markup clearly indicated mere expense reimbursement rather than service provision. The agreement entitled assessee to markup for actual business support services, which was absent here. Additionally, even if re-characterized as business support services, the revised markup of 10.18% would fall within the arms length range of 4.03%-14.23%. ITAT concluded no TP adjustment was warranted and decided in favor of the assessee. Case-Laws Income Tax Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775235