Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1630 - ITAT PUNETP Adjustment - Comparable selection - HELD THAT:- Bodhtree Consulting Ltd. should be deleted from the final list of comparables. KALs Information Technology Systems Ltd. is engaged in selling of software products which is different from the activities undertaken by assessee, namely, rendering of software service only to its AEs, we hold the same to be incomparable and accordingly direct to exclude it from the final list of comparables. Infosys Technologies Ltd. - There is no match as compared to Infosys Technologies Ltd. with regard to huge turnover, R & D and other factors. Accordingly, we direct for exclusion of Infosys Technologies Ltd. from the final list of comparables. ITES Service segment - Accentia Technologies Ltd.- We find that they are functionally substantially different and as held by PTC SOFTWARE (I) PVT. LTD., [2018 (4) TMI 1002 - BOMBAY HIGH COURT] that KPO services are not same as BPO services and hence, cannot be held to be comparable. Respectfully following the ratio laid down by the Hon’ble Bombay High Court, we hold this company to be excluded from the final list of comparables. Cosmic Global Limited - There is substantially outsourcing work conducted by this company. Respectfully following the decision of PTC SOFTWARE (I) PVT. LTD. [2016 (9) TMI 1282 - BOMBAY HIGH COURT] we direct the Assessing Officer to exclude this company from the final list of comparables while benchmarking the international transaction of the assessee. Eclerx Services Limited - We direct the Assessing Officer to exclude this company from the final list of comparables. We set aside the impugned order and remit the matter of determination of ALP of Software development and ITes services afresh by the AO/TPO in accordance with law.
|