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2018 (4) TMI 1850 - AT - Income TaxTP Adjustment - comparable selection - Assessee is engaged in the business of providing IT Enabled Services to its parent company - HELD THAT:- CG VAK Software & Exports Ltd.rejected by the TPO on the ground that its turnover is less than ₹ 1 crore in ITeS segment - It is evident that when the company is functionally similar, the company cannot be rejected on the ground that the company’s turnover is less than ₹ 1 crore especially when the companies with high turnover have not been rejected. To the same effect is the Hon’ble Delhi High Court decision in the case of CIT v Mckinsey Knowledge Centre India Pvt Ltd [2015 (3) TMI 1226 - DELHI HIGH COURT] - From perusal of the orders of the lower authorities, it is not clear whether the company passes through the filters applied by the TPO. Therefore, we deem it fit to remit this issue back to the file of the TPO with a direction to examine whether this company had passed through other filters applied by the TPO. R Systems International Ltd. rejected on the ground that it follows different accounting year - Hon’ble Delhi High Court has held in Mckinsey Knowledge Centre India Pvt Ltd. [2015 (3) TMI 1226 - DELHI HIGH COURT] that the company cannot be rejected simply because it follows different accounting year and results of adjusted period can be adopted - in the present case, the assessee-company had not discharged the onus of filing the results for adjusted period of the company. In absence of this segmental information, inclusion of this company is not possible. Further, no such plea was made before TPO. Hence, the ground of appeal filed in this regard is rejected. Accentia Technologies Ltd. rejected as functionly dissimilar with that of assessee Accentia Technologies Ltd.not comparable with that of assessee as relying on M/S. TESCO HINDUSTAN SERVICE CENTRE PVT. LTD., [2017 (1) TMI 1673 - ITAT BANGALORE] E-clerx Services Ltd., is functionally different as it provides high end data analytics and customized process solutions and is a leading Indian provider of KPO services Infosys BPO Ltd.is functionally dis-similar and different from the assessee and hence is not comparable and the finding rendered in the case of Trilogy E-Business Software India Pvt. Ltd. [2016 (6) TMI 1293 - ITAT BANGALORE] for Assessment Year 2007-08 is applicable to this year also. Deduction u/s 10A - direction of the Hon'ble DRP to include earning of foreign exchange, miscellaneous income as part of business income for the purpose of calculating benefit u/s 10A - HELD THAT:- This issue is no longer res integra as it is resolved by the Hon'ble jurisdictional High Court in the case of CIT vs. Hewlett Packard Global Soft Ltd [2017 (11) TMI 205 - KARNATAKA HIGH COURT] as held incidental activity of parking of Surplus Funds with the Banks or advancing of staff loans by such special category of assessees covered under sections 10-A or 10-B of the Act is integral part of their export business activity and a business decision taken in view of the commercial expediency and the interest income earned incidentally cannot be de-linked from its profits and gains derived by the Undertaking engaged in the export of Articles as envisaged under Section10-A or section 10-B of the Act and cannot be taxed separately under section 56 - Decided against revenue.
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