TMI Blog2011 (5) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover was also less than the turnover of the tested party - Accordingly, the TPO passed an order u/s 92CA(3) of the Act on 23-11-2006 determining the Arm's Length Price of remuneration received by the assessee for software development services - Held that: the Tribunal vide order dated 22-10-2009 upheld the exclusion of M/s. Imercius Technologies India Pvt. Ltd. as comparable and remanded the issue of 5 per cent relaxation to the Assessing Officer to reconsider the same in view of the amendment in section 92C(2) of the Act - The Tribunal further accepted the additional ground taken by the assessee for exclusion of M/s. Datamatics Technologies from the list of comparables for the purpose of determination of Arm's Length Price - Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into with its parent company. The TPO noticed that the assessee had employed Transactions Net Margin Method for the purpose of computing Arm Length Price and did not dispute the same. He further noticed that one of the comparables, out of independent comparable selected by the assessee for the computation of Arm's Length Price was M/s. Imercius Technologies India (P.) Ltd. which showed a net loss at the rate of 73.48 per cent. The TPO rejected M/s. Imericus Technologies India (P.) Ltd. as comparable holding that the said company was incorporated in 2002 only and its networth was negative whereas turnover was also less than the turnover of the tested party. Accordingly, the TPO passed an order under section 92CA(3) of the Act on 23-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d remanding the case to the Assessing Officer whereby it had directed that the assessee shall be entitled to produce all relevant material for determination of proper Arm's Length Price and shall co-operate for expeditious disposal of the matter. 5. On a query being put to the learned counsel for the revenue as to what has happened before the Assessing Officer after the remand, she candidly admitted that the order has been passed in favour of the assessee on 11-1-2010 and has produced a copy of the said order passed under section 92CA(3) of the Act. 6. In view of the observations of the Tribunal whereby an opportunity was provided to the assessee to produce material before the Assessing Officer and the fact that after the remand and con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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