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2022 (10) TMI 1102 - AT - Income TaxTP Adjustment - comparable selection - Whether high turnover is a ground for excluding companies as not comparable with a company that has low turnover? - HELD THAT:- As relying on case of Autodesk India Pvt.Ltd. [2018 (7) TMI 1862 - ITAT BANGALORE]. we hold that the following 3 companies viz., Exiliant Technologies Pvt. Ltd., Tata Elxsi Ltd., and Mindtree Ltd., whose turnover in the current year is more than Rs.200 Crores should be excluded from the list of comparable companies. Action of the TPO in not giving effect to the directions of the DRP directing Devita Engineering (India) Ltd., as a comparable company - It is undisputed that the DRP in its directions directed Devita Engineering (India) Ltd., to be included as a comparable company (vide Paragraph 2.3.20.1 of the DRP’s direction). The TPO, while giving effect to the order of the DRP, failed to give effect to this direction. We are of the view that it would be just and appropriate to direct the TPO/AO to include this company also as a comparable company in the list of comparable companies. We hold and direct accordingly. Grant of working capital adjustment should be directed to be examined by the TPO/AO afresh in the light of the decision of the tribunal in the case of Huawei Technologies India Pvt. Ltd [2018 (10) TMI 1796 - ITAT BANGALORE] after affording opportunity of being heard to the assessee.
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