TMI Blog2013 (7) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... see - assessee had furnished details of workables in respect of 23 companies and the mean of the comparables worked out to 10%, as against the margin of 17% shown by the assessee - No substantial question of law arises - Decided against Revenue. - ITA 1204/2011 - - - Dated:- 10-7-2013 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Petitioner : Ms. Suruchi Aggarwal, sr. standing counsel For the Respondent : Mr. G. C. Srivastava and Ms. Preeti Bhardwaj, Advocates. ORDER SANJIV KHANNA, J. (ORAL) This appeal by the Revenue, which pertains to the assessment year 2006-07, in the case of Agnity India Technologies Pvt. Ltd. raises a short issue. The respondent-assessee is a wholly owned subsidiary of Bay Packets Inc., USA a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Technologies Ltd. 40.08 Arithmetic mean 27.08 4. One of the companies which was included by the TPO was Satyam Computer Services Ltd. Dispute Resolution Panel excluded the said company from the comparables for obvious reasons. 5. The tribunal has observed that the assessee was not comparable with Infosys Technologies Ltd., as Infosys Technologies Ltd. was a large and bigger company in the area of development of software and, therefore, the profits earned cannot be a bench marked or equated with the respondent, to determine the results declared by the respondent-assessee. In paragraph 3.3 the tribunal has referred to the difference between the respondent-assessee and Infosys Technologies Ltd. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Expenditure on Research Development Rs. 102 crores Rs. Nil Other 100% offshore (from India) 6. Learned counsel for the Revenue has submitted that the tribunal after recording the aforesaid table has not affirmed or given any finding on the differences. This is partly correct as the tribunal has stated that Infosys Technologies Ltd. should be excluded from the list of comparables for the reason latter was a giant company in the area of development of software and it assumed all risks leading to higher profits, whereas the respondent-assessee was a captive unit of the parent company and assumed only a limited risk. It has also stated that Infosys Technologies Ltd. cannot be compared with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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