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2024 (5) TMI 587 - ITAT HYDERABADTP Adjustment - comparable selection - Cera Sanitary Ware Limited and HSIL Limited - HELD THAT:- As decided in own case [2023 (9) TMI 543 - ITAT HYDERABAD] the terms used are generic in nature giving an impression that the company is engaged in diversified activities, the core activity of both the entities is dealing in tiles and sanitaryware. One shall not lose sight of the fact that information contained in the websites of any entity and sometimes in the annual report would be intended to give a very attractive picture of such company and its areas of activity will be mentioned in usually general and widespread terms to attract the customers and the same cannot be given much weight. In these circumstances, we agree with the findings of the learned DRP and decline to exclude HSIL Ltd., from the list of comparables. Cera Sanitary Ware Limited - The perusal of Rule 10(B)(1)(e) clearly mentioned that the net profit margin realized by the assessee from the international transactions is required to be compared in relation to the cost incurred or the assets employed by enterprise (assessee). In the present case, as noted by the Tribunal in its finding in para 25 the functions performed by the assessee and that of the Cera Sanitaryware Limited are comparable and what was distinguished by the Tribunal in its earlier order is that with the consumption of raw material used by the company (Cera) for different activities is not relatable to the proportion of the revenue by the said activities. In our understanding, once the assessee company is broadly compared with the Cera Sanitaryware Limited, then what is required to be seen is the net profit margin earned by the company (Cera Sanitaryware Limited) with that of the assessee. In the present case, the DRP has considered the submission of the assessee and thereafter, in para 2.2.2 reproduced hereinabove, had concluded that this company is comparable with the assessee and accordingly, the Assessing Officer based on the direction of the DRP has made the assessment in the hands of the assessee. Since this company was excluded by the Tribunal in the case of the assessee for A.Y. 2015-16 [2023 (9) TMI 543 - ITAT HYDERABAD], therefore, respectfully following the decision of the co-ordinate Bench of the Tribunal, we direct the learned Assessing Officer/TPO to exclude this comparable from the list of comparables. Crystalizing tax demand by ignoring the MAT credit carried forward from previous assessment years - HELD THAT:- We grant the MAT credit as admissible in law.
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