Delhi HC Upholds RPM for Distributor Reselling Unmodified Goods without Value Addition

The Delhi High Court upheld the Resale Price Maintenance (RPM) method for a distributor reselling unmodified goods without adding any value. The court reasoned that in cases where the distributor simply acts as a pass-through entity without undertaking any further processing or value addition to the goods, the RPM method is an appropriate way to determine the arm's length price for transfer pricing purposes. This ruling provides guidance on the application of transfer pricing methodologies in specific distribution scenarios.