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2018 (3) TMI 1921 - ITAT MUMBAITP Adjustment - comparable selection - HELD THAT:- Accentia Technologies Ltd.- A copy of the order of Ld.DRP has been placed on record. The Ld. DR could not controvert the said factual matrix. Upon perusal of assessee’s TP study, as placed on record, we find that the assessee was engaged in providing application support, analytical support, R&D support to its AE. Assessee was responsible for identification of resources, recruitment of manpower, training, project management and execution. These services were characterized as routine support services with less than normal business risk. These services, in our considered opinion, could not be equated with the functions performed by Accentia. This is further evidenced by the fact that in immediately AY 2011-12, Ld. DRP excluded this entity on functional dissimilarity. Keeping in view the fact that nothing on record suggest that there was any change in functional profile of the assessee or the said entity, we direct for exclusion of this entity. Nothing has been brought on record to suggest that the revenue contested the aforesaid stand of Ld. DRP, in any manner. Eclerx Services Ltd.- As observed that during the year, this entity had acquired Agilyst Inc., a US company providing operations and a tantalizing support to some of the largest cable and telecommunications companies in the world. Respectfully following the same, holding that scale of operation was a significant criterion for the purpose of benchmarking analysis and finding that this entity was functionally dissimilar, we direct for exclusion of this comparable. Infosys BPO Ltd.- As relying on PENTAIR WATER INDIA (P) LTD. [2014 (5) TMI 1068 - ITAT PANAJI] exclusion of this entity on account of functional dissimilarity and extra-ordinary events which took place during the year. TCS E-serve Ltd.entity has been directed to be excluded since it was engaged in providing high end KPO services. Secondly, applying the scale of operation criteria as approved by Hon’ble Bombay High Court in CIT V/s Pentair Water India (P.) Ltd. [2014 (5) TMI 1068 - ITAT PANAJI] we direct for exclusion of this entity. Cross Domain Solutions Pvt. Ltd.- DRP has relied upon the decision of Hyderabad Tribunal rendered in M/s Excellence Data Research Pvt. Ltd. [2014 (9) TMI 126 - ITAT HYDERABAD] wherein the nature of the services was found to be similar to ITeS filed. The cited decision of Bangalore Tribunal pertains to AY 2008-09 and therefore, would not throw much light on the nature of services being rendered by this entity. Therefore, we deem it fit to restore the matter back to Ld. AO / Ld. TPO to appreciate the functional profile of this entity and re-adjudicate the same as urged by Ld. AR with a direction to the assessee to substantiate the same. Oxygen Bio Research - We direct Ld. TPO / Ld. AO to consider Profit Before Depreciation for the purpose of benchmarking analysis. Syngene International Ltd - AR submitted that this company was found functionally non-comparable and wrongly included in the final list of comparable. It has been submitted that RPT of this entity is greater than 25% and therefore, the same would not be a good comparable - Upon perusal, we find that the assessee’s submissions would require verification and therefore, we deem it fit to restore the matter of this comparable to the file of Ld. TPO / Ld. AO for re-adjudication in the light of submissions made by Ld. AR. The assessee, in turn, is directed to substantiate the same.
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