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2017 (5) TMI 1588 - DELHI HIGH COURTTPA - comparables selection - Margins earned by the government companies as held to be reliable for computation of the Arm”s Length Price - excluding Apitco Limited as a comparable - Held that:- In the present case the Assessee itself picked up two of the 100% government owned companies namely ECIL and ITDCL as its comparables but that was not accepted by the TPO or the DRP. The reason for the ITAT excluding Apitco as a comparable is also for the same reason that it was a 100% government owned company. The Court finds that the view taken by the ITAT in the present case, which is consistent with the view expressed by the Mumbai Bench of the ITAT and which has been affirmed by the Bombay High Court in CIT v. ThyssenKrupp Industries India Pvt. Ltd [2016 (4) TMI 88 - BOMBAY HIGH COURT], is indeed a plausible one to take. Whether taking up a 100% government owned company as a comparable would be justified or not would depend on the facts and circumstances of the case. The basic rule as contained in Rule 10B of the Income Tax Rules would apply. In the facts of the present case, however, the Court finds that the view taken by the ITAT does not give rise to any substantial question of law. Appeal is dismissed.
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