Wipro Ge Healthcare Private Limited ... vs Dcit, Central Circle-2(1), Bangalore on 6 May, 2026
79.6 As regards the reasoning adopted by the Ld. DRP that in
an uncontrolled situation royalty would not be borne by a contract
manufacturer, we are of the view that such a general proposition
cannot, by itself, justify rejection of the assessee's benchmarking
without undertaking a proper functional and economic analysis of the
specific arrangement and without identifying any comparable
uncontrolled transactions. Transfer-pricing adjustment has to be founded
on cogent benchmarking analysis and not on presumptions.
79.7 We also find force in judicial precedent in the case of
Deputy Commissioner of Income-tax vs. Toyota Kirloskar Motor (P.) Ltd.
[2024] reported in 168 taxmann.com 603 (Bangalore - Trib.)[23-10-
2024] wherein the Hon'ble Karnataka HC has held no separate
adjustment is required for payment of royalty if TNMM approach has
been adopted at entity level which included royalty also. The relevant
para is reproduced below: