This case deals with transfer pricing adjustments made by the ...

Tax case on transfer pricing adjustments for international sales of pharma products and raw material purchases.

Case Laws     Income Tax

October 9, 2024

This case deals with transfer pricing adjustments made by the tax authorities regarding international transactions involving sale of Paclitaxel, Disodium Pamidronate, and purchase of Methylene Chloride Soluble (MCS). The tax officer rejected the Transactional Net Margin Method (TNMM) adopted by the assessee and applied the Comparable Uncontrolled Price Method (CUP). The appellate authorities upheld the assessee's use of TNMM for Paclitaxel and Disodium Pamidronate, considering factors u/r 10B(2) of the Income Tax Rules. For MCS, the tax officer determined the cost price per kg as Rs. 32, while the assessee claimed Rs. 4648 per kg based on a cost certificate. The appellate authorities accepted the assessee's cost certificate in the absence of any material challenging its veracity. The High Court found no substantial question of law arising from the factual findings of the lower authorities.

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