In this contribution, the author reviews the recent transfer pricing ruling, in relation to the characterization of the taxpayer as a manufacturer, issued by the Mumbai Income Tax Appellate Tribunal in UPM-Kymmene India Pvt. Ltd v. DCIT. The author raises some important aspects, which should have been considered by the tax authority and Tribunal in arriving at their decisions, and also provides his view on why the taxpayer should have been characterized as a value added distributor.