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2019 (6) TMI 1673 - AT - Income TaxTP Adjustment - Comparable selection - application of turnover filter - HELD THAT:- We find that various aspects of application of turnover filter, was considered by this Tribunal in the case of Autodesk India Pvt. Ltd [2018 (7) TMI 1862 - ITAT BANGALORE] and it was held that turnover is a relevant criteria for deciding comparability of companies and that a company with huge turnover cannot be compared with a company with small turnover. The turnover criteria was based on classification of companies with turnover upto Rs. 200 Crores falling within one category and companies with turnover of Rs. 200 crores to Rs. 500 crores falling in another category and so on. We hold that it would be appropriate while choosing comparable companies to exclude companies by application of turnover filter. We also observe that the TPO has himself applied lower turnover filter of excluding companies with turnover of less than Rs. 1 Crore and in such circumstances, there is no reason as to why he should not apply the higher turnover limit. We, therefore, direct the AO to re-compute ALP by excluding above six companies from the list of comparable companies by applying the turnover filter. No other arguments were advanced on the determination of ALP.
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