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2019 (1) TMI 1352 - AT - Income TaxTPA - Comparable selection - rejection on functional difference - Held that:- Assessee-company is engaged in providing Information Technology enabled services (ITes), Web enabled services and Business Process Outsourcing services to its Group company in nature of call centre and back office support (BPO) services. It also provides in-house software support services and knowledge process outsourcing services to its Group Company. The assessee company is a captive unit remunerated at cost plus mark up to 15% by its Group Company, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Treat the foreign exchange gain/loss as part of operating income of the assessee. Risk adjustment - We direct the Assessing Officer to allow risk adjustment in turn relying on the proposition laid down by the Delhi Bench of Tribunal in the case of Sony India Pvt. Ltd. [2008 (9) TMI 420 - ITAT DELHI-H] , wherein it was allowed @ 20%, and compute the TP adjustment, if any, in the hands of assessee.
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