TMI Blog2016 (11) TMI 1605X X X X Extracts X X X X X X X X Extracts X X X X ..... e financial year in which the international transactions have been made. In the instant case Financial Year 2009-10 is relevant to the assessment year under appeal. Thus, the financial years to be considered for determining whether the company is consistent loss making are financial years 2007-08, 2008-09 and 2009-10. A perusal of the profit and loss account of Onward Technologies Ltd. placed on record shows that the said company has suffered losses in financial years 2007-08, 2008-09 and 2009-10. Thus, it is evident from the perusal of the financial results of Onward Technologies Ltd. that Onward Technologies Ltd. is consistent loss making company, therefore, the said company cannot be considered as a good comparable. Exclusion of Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The I-T authorities erred in not appreciating that there is no any rule of such rejection of public domain data. 3. Alternatively and without prejudice, the learned CIT(A)-IT /TP erred in law and on facts in confirming inclusion of external comparable called TATA Technologies Limited, having higher OPTC of 31.18%, despite removal of Onward Technologies Limited, on the analogy of loss making entity. The learned I-T authorities ought to have resorted to process of filtering of alleged abnormal results companies fairly. 4. Alternatively and without prejudice, the learned CIT(A)-IT/TP and the learned TPO erred in law and on facts in not appreciating that the company, M/s Tata Technologies Limited, was a wrong inclusion in the final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order dated 31-12-2012, the assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) rejected the contention of the assessee and upheld the findings of Assessing Officer. Against the order of Commissioner of Income Tax (Appeals), the assessee is in second appeal before the Tribunal. 5. Shri Kishor Phadke appearing on behalf of the assessee submitted that the Commissioner of Income Tax (Appeals) has erred in upholding the exclusion of Onward Technologies Ltd. from the list of comparables on the ground that it is a consistent loss making company. The ld. AR referred to profit and loss account of Onward Technologies Ltd. from the financial years 2006-07 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comparable, therefore, the same should included in the list of comparables. In an alternate prayer the ld. AR prayed for excluding from the list of comparables Tata Technologies Ltd. having operating margin of 31.18% on the ground of high profit making company. 8. There is no dispute in respect of settled position that the consistent loss making company has to be excluded from the list of comparables. A company is said to be consistent loss making when the company has incurred losses in the three consecutive financial years including the financial year in which the international transactions have been made. In the instant case Financial Year 2009-10 is relevant to the assessment year under appeal. Thus, the financial years to be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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