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2016 (7) TMI 1359 - AT - Income TaxTPO - selection of comparable - selection criteria - Held that:- Type of work being done by the assessee captured would show that assessing was also doing analysis of results, testing and calibration etc.. It had to use market intelligence, maintain e-tools and provide reporting analytics. In our opinion the level of expertise being used by the assessee in its technology enabled services,thus companies functionally dissimilar with that of assessee need to be deselected from final list of comparability. In the result, we direct exclusion of Accentia Technologies Ltd, Acropetal Technologies Ltd, (seg) from the list of comparables, whereas we uphold the inclusion of ICRA Online Ltd, (seg) in the list of comparables. However, viz., Jeevan Scientific Technologies Ltd, (seg), we are remitting the issue of its fitness for comparison back to the AO/TPO for considering the turnover of the BPO segment of the said company. Ordered accordingly. Inclusion of foreign exchange gains/losses as operating in nature - Held that:- It is clear from the order that DRP had directed the AO/TPO to consider foreign exchange gains/losses in respect of assessee as well as the comparables as operating in nature for the TP analysis. Since Revenue is not in appeal on the above directions of the DRP, we are of the opinion that the AO/TPO has no option but to follow the directions of the DRP.
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