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2022 (8) TMI 1379 - ITAT MUMBAITP Adjustment - comparable selection - ALP of the international transaction pertaining to administrative support and back-office services provided by the Appellant to its associated enterprises - rejection of two concerns i.e. M/s. CG-Vak Software and Exports and M/s. R. Systems International - HELD THAT:- As relying on American Express (I) (P) Ltd. [2019 (7) TMI 1663 - ITAT DELHI] case we direct the TPO/AO to consider these two entities for benchmarking the international transactions. M/s Acropetal Technologies Ltd. cannot have been considered as a valid comparable, and therefore, we direct the TPO to exclude the same. M/s Infosys BPO Ltd - As decided in Swiss Re Services India Pvt. Ltd [2020 (2) TMI 972 - ITAT MUMBAI] wherein on similar facts and circumstances, Infosys BPO was rejected as a comparable as it was a huge company with different risk profile and nature of services, having its own brand value and IPs, unlike the assessee which broadly provided only back office support services to its AEs.We accordingly direct the AO to exclude M/s Infosys BPO Ltd from final set of comparables. TPO/AO is accordingly directed to re-work the arm’s length margin of the finally selected comparables and benchmark against the assessee’s margin and/or international transactions.
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