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2017 (5) TMI 1815 - AT - Income TaxTP Adjustment - comparable selection - Turnover filter - HELD THAT:- As the turnover filter or less than 1 / 10th of the assessee company's turnover or more than 10 times Of the turnover of the assessee company is a good filter and by applying the same, we direct the AO/TPO to exclude two companies i.e. Infosys BPO Ltd and M/S L & T Infotech Ltd from the list of final comparables by applying higher turnover filter because, the turnover of these two companies is more than 10 times of the turnover of Software Development Segment of the assessee company. Similarly, in respect Of ITES Segment, we direct the to exclude two companies i.e. Infosys BOPO Ltd and TCS E-Serve Ltd. by applying turnover filter because, the turnover of these two companies is more than 10 times of the turnover of ITES segment Of the assessee company. Request of the assessee for exclusion of Persistent Systems Ltd. in Software Development Segment and universal Print Systems Ltd. (Seg.) and BNR Udyog Ltd. (Beg.) in ITES Segment. we direct the AO/TPO to examine these companies Afresh on account of functional dissimilarity being claimed by the Assessee because regarding these 4 comparable companies, the Order of DRP is very cryptic and therefore, this issue should be decided afresh in respect of both these segments for these 4 comparable company by way of a speaking and reasoned order. Request for inclusion of two comparable companies in the final list of comparables for Software Development Segment i.e. Thinksoft Global Services Ltd, and Evoke technologies Pvt. Ltd. and the request for inclusion of two companies in the final list of comparables for ITES segment i.e. Jindal Intellicom Ltd. and Microland Ltd. also, we direct the AO/TPO to decide this issue afresh because we find that the order the DRP regarding these four comparables is also very crypti Two comparables companies in each of these two segments are excluded by applying turnover filter and the issue regarding exclusion and inclusion of various other comparables of these two segments is restored to AO/TPO for fresh decision as discussed above. The AO/TPO should decide this issue Afresh by way of speaking and reasoned order and after affording adequate opportunity of being heard to the assessee. Appeal of the assessee stands allowed for statistical purposes.
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