Karnataka HC says Free Capital Equipment from an AE Is Not Automatically a Taxable Benefit

The Court upheld exclusion of substantially larger companies from the comparable set, acceptance of cash PLI after appropriate depreciation differences, and treatment of provision for doubtful debts as an operating expense. It also held that testing equipment supplied by the AE, which remained the AE's property and was used only for delivering services to that AE, did not constitute a taxable benefit under Section 28(iv).