Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 900 - ITAT PUNETP Adjustment - comparable selection - DRP rejecting Eclerx Services Ltd. treating it as KPO - HELD THAT:- It is a settled issue that the 'E-clerx' constitutes a KPO company and the same is not comparable to that of a BPO company like the present assessee. Considering the settled nature of the issue at the level of the Jurisdictional High Court on this issue, we find the order of the DRP and the Assessing Officer is fair and reasonable and it does not call for any interference. Accordingly, ground No.1 raised by the Revenue is dismissed. Computation of operating profit margin without considering the one-time price rebate - HELD THAT:- As decided in AAM SERVICES INDIA PVT. LTD. [2018 (3) TMI 1814 - ITAT PUNE] such prior period expenses/items/foreign exchanges losses are not to be reduced from the current year's profits for determining PLI of the year under consideration. DRP granted relief to the assessee on this issue of prior period rebate claim qua the computation of the PLI of the assessee for the current year. It is a settled legal proposition that the 'extraordinary items' such as the prior period rebate expenses should not be considered for the computation of the operating profits for the current year. Reliance is placed on the said Pune Bench decisions (supra) and the Delhi Bench decision in the case of EDAG Enggineers & Design India (P.) Ltd. [2014 (10) TMI 1010 - ITAT DELHI] We should direct the Assessing Officer/TPO to re-compute the operating profit margin of the assessee without considering the said “one-time price rebate” and thus, we affirm the views of the DRP. Thus, on the strength of the precedents on the subject, the order of the DRP in giving the above direction to the Assessing Officer, is fair and reasonable and the same does not call for any interference. Accordingly ground No.2 raised by the Revenue is dismissed.
|