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2016 (5) TMI 1330 - AT - Income TaxTPA - ALP determination - comparables selection - Held that:- Bodhtree Consultancy Ltd. - Since there is no segmental details in the data provided by this company therefore it is not possible to ascertain whether the revenue earned by this company during the year is from one of these activities or some of these activities or all of these activities. As far as the net work storage and data management solutions are concerned, the assessee is also providing software solutions to its AEs group who are leaders in net work storage and data management solution. Therefore in the facts and circumstances of the case, we are of the view that in the absence of complete information and details of the financials, it is not possible to conclude that this company is engaged in the similar business activity as of the assessee or in a different activity. Tata Elxsi Ltd. (Seg.) - as emerging from the Annual Report of this company and therefore this company cannot be considered as functionally comparable to that of software development services provided by the assessee to its AEs. Accordingly, we direct the Assessing Officer/TPO to exclude this company from the list of comparables. Infosys Technology Ltd. - direct the Assessing Officer / TPO to exclude this company from the list of comparables. Thinksoft and FCS Software - Once these companies were considered for inclusion in the list of comparables and the assessee has not objected against the inclusion then even if the TPO decides to exclude these companies from the final set of comparables, the assessee would have been given an appropriate opportunity of hearing on the reasons and criteria on the basis of which the TPO proposed to exclude these companies. Sasken Communications Technologies Ltd. (Seg.) - we are of the view that the assessee has made out prima facie case of incorrect computation of margin of this company and therefore we set aside this issue to the record of the Assessing Officer/TPO to consider the objections of the assessee in respect of incorrect computation of margin. Working Capital Adjustment - we direct the Assessing Officer/TPO to give the working capital adjustment after considering the objections of the assessee as well as after exclusion of the companies as directed by us from the list of comparables. Acentia Technology Ltd is directed to be excluded from the list of comparables Cosmic Global Limited we direct the AO/TPO to exclude this company from the list of comparables for the purpose of determining the ALP Eclerx Services - this company is mainly engaged in providing high end services involving specialized knowledge and automation expertise in the field and therefore the same cannot be compared with a low end service provider company. Following the earlier decisions of this Tribunal, we direct the Assessing Officer/TPO to exclude this company from the list of comparables. Exclusion of the telecommunication expenses incurred in foreign currency both from export turnover as well as total turnover.
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