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2020 (11) TMI 1097 - ITAT BANGALORETP Adjustment - comparable selection - HELD THAT:- M/s. Infosys Technologies Ltd is not functionally comparable since it owns significant intangible and has huge revenues from software products. Also breakup of revenue from software services and software product is not available. Persistent Systems Limited company has acquired certain intellectual property products and generate revenue from licensing and support of such products. It is also observed that this company is involved in the entire life-cycle of software development which is not similar to what assessee caters to its associated enterprises. Assessee carries out only such functions which are required by associated enterprise under its supervision and guidance. Mindtree Limited company carries out research and development activities and has created large intangibles. Under such circumstances we do not find this company to be comparable with that of a captive service provider like assessee. Thirdware Solutions Limited to be included as a comparable in the list of comparables. I2T2 India Limited - We find force in the argument of Ld. D.R. as seen from the direct report of the I2T2 India Ltd. for the year ending on 31.3.2014, which is placed on record in page no.1837 that assessee is engaged in IT enabled services industry and it cannot be compared with assessee’s case, which is engaged in Software development services marketing support services and data centre services and accordingly, exclusion is justified. We confirm the findings of the loer authorities on this comparable. Daffodil Software Limited - submissions of the Ld. A.R. is that this comparable passes all filters adopted by TPO and the software development services revenue is more than 75% and hence in the interest of justice, we remit this issue to the file of TPO to see whether this comparable passes all filters adopted by TPO. Accordingly, this issue remitted back to AO/TPO for fresh consideration. Companies functionally dissimilar with that of assessee software development services need to be deselected. Disallowance of depreciation claimed in respect of additions made during the previous year - HELD THAT:- As rightly pointed out by the Ld. D.R., the DRP has already given a direction to A.O. to consider the additional information given by the assessee on this issue. However, assessee has not furnished all the bills & vouchers with regard to the acquisition of various fixed assets. Once again, we direct the assessee to furnish necessary information before A.O. and the A.O./TPO shall examine the same in the light of the bills & vouchers produced by the assessee. Disallowance of travelling expenses and legal & professional expenses - HELD THAT:- On this issue also, assessee has not produced all the bills & vouchers. Once again we direct the assessee to produce the same before A.O. On production of these evidences, A.O. shall re-examine the issue.
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