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2019 (12) TMI 1557 - ITAT BANGALORETP Adjustment - Compabale selection - HELD THAT:- Genesys International Corpn.Ltd., Infosys Ltd., Larsen and Toubro Infotech Ltd., and Persistent Systems Ltd. excluded from the final list of comparable companies for the purpose of arriving at the arithmetic mean of comparable companies for the purpose of comparison with the profit margins. Company ICRA Techno Analytics Ltd. - The said company was excluded by the DRP on the ground of functional comparability. Besides the above, the related party transaction in the case of the aforesaid company was more than 25% as is evident from page 1129 & 1130 of Assessee’s paper book containing the financial statement of this company from capitaline database, which details are extracted at page 863 of Assessee’s paper book which is objections filed by the Assessee before the DRP. In the circumstances, this company has to be excluded from the list of comparable companies. Request of the Assessee to compute the PLI of the Assessee by considering provision for service tax written back as part of the operating profit of the Assessee - HELD THAT:- As in the decision rendered in the case of Sony India (P) Ltd. Vs. DCIT [2008 (9) TMI 420 - ITAT DELHI-H] this aspect has been considered and it was held that provisions written back in the P&L a/c should be regarded as forming part of the operating profit of the taxpayer. Thus we hold that provision written back should be regarded as part of the revenue of the Assessee while determining PLI. TPO is directed to compute the ALP of the international transaction of rendering of SWD services in the light of the directions contained in this order, after affording the Assessee opportunity of being heard. No other grounds relating to Transfer Pricing adjustment, were pressed for adjudication. Grant of appropriate MAT credit - HELD THAT:- The issue has been dealt with by the DRP by directing the AO to allow MAT credit, if available, according to the provisions of Sec.115JAA of the Act. We are of the view that the said directions are proper and we direct the AO to allow MAT credit as per the directions of the DRP.
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