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TMI Blog2017 (6) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. If the AO is not agreeable to grant the credit for an amount of ₹ 45,22,357/-, then the AO is directed to give cogent reason for not giving credit for the same. This ground is allowed. - I.T(TP).A No.1519/Bang/2012 - - - Dated:- 9-6-2017 - Shri. A. K. Garodia, Accountant Member And Shri. Lalit Kumar, Judicial Member Assessee by : Shri. K. R. Vasudevan, Advocate Revenue by : Shri. G. R. Reddy, CIT-DR-I ORDER PER LALIT KUMAR, JUDICIAL MEMBER : The assessee has filed this appeal against the order of the ACIT, Circle-12(1), Bengaluru, dt.21.09.2012, passed u/s.143(3) r.w.s.144C(13) of the IT Act, 1961, in pursuance to the directions of the DRP. 02. Brief facts of the case are that the assessee company filed return of income for the assessment year 2008-09 declaring total income of ₹ 1,15,54,520/- and thereafter filed a revised return on 02.07.2009 declaring income of ₹ 1,60,79,170/-. The case was selected for scrutiny and was referred to the TPO for bench marking the international transactions u/s.92 of the IT Act. 03. The assessee filed the TP study before the TPO wherein the following 18 comparables were selected : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. e-Zest Solutions Ltd 29.81 4. Flextronics (Aricent) 7.86 5. iGate Global Solution Ltd 13.09 6. Infosys 40.37 7. Kals Information Systems Ltd (seg 41.94 8. Persistent Systems Ltd 20.31 9. Quintegra Solutions Ltd 21.74 10. R Systems International (seg) 15.30 11. Sasken Communication Technologies Ltd (seg) 18.97 12. Tata Elxsi (seg) 18.97 13. Thirdware solutions Ltd 19.35 14. Wipro Ltd (Seg) 28.45 15. Softsol India Ltd 17.89 AVERAGE 23.65 After retaining the 15 compar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riptive and argumentative in nature and hence not reproduced. II. Interest on ECB Loan under this head, sub-grounds 10 to 10.3 are raised, which are descriptive and argumentative in nature and hence not reproduced. III. Corporate Tax under this head, sub-grounds 1 to 3 are taken. IV. Short credit of taxes paid as self-assessment tax : The learned AO erred in not granting full credit for self-assessment tax paid by the appellant company and has restricted the credit of selfassessment tax to ₹ 40,00,000 instead of ₹ 45,22,357 as eligible. V. Levy of interest u/s.234B of the Act of ₹ 1,462,923/-. At the threshold, the Ld. AR has pressed for allowing the additional ground bearing nos.11 and 12, which are as under : Ground No.11 : Lucid Software Limited ( Lucid ) should be rejected as a comparable The Appellant submits that the Ld. TPO has erred in including Lucid as a functionally comparable company to the Appellant while doing the comparability analysis. Ground No.12 : Bodhtree Consulting Limited ( Bodhtree ) should be rejected as a comparable The Appellant submits that the Ld. TPO has erred in including Lucid as a functionally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has raised grounds 1 to 9 which pertain to TP adjustment. It has been submitted that the other 11 companies, are required to be excluded as those companies are not similar functionally to that of the assessee. It was also pointed out that the Tribunal in the case of Infineon Technology India P. Ltd (supra), had examined the functional similarity of these comparables and thereafter had excluded these comparables from the list of comparables. 10. On the other hand, the Ld. DR has submitted that as this Tribunal is remanding the matter back in respect of two comparables, namely, Lucid Software Ltd and Bodhtree Consulting Ltd, in the interest of justice the other aspects of the TP study may also be remanded back to the file of the TPO. 11. We have heard the rival contentions and perused the materials on record. Accepting the contention of the Ld. DR, we hereby direct the TPO to examine afresh the entire TP issue by applying the correct filters and following the judgments laid down by the Hon ble High Courts and the decisions of the Tribunal on this aspect. 12. The next ground no.II, is in respect of Interest on ECB loan. No arguments were addressed on this issue by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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