TMI Blog2022 (1) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... with the functions performed by the assessee, and that aspect needs proper verification as the data before us cannot convey as to how this comparable has to be excluded or included. Therefore, it will be appropriate to remand the issue relating to its comparability to the file of the Ld. TPO/learned Assessing Officer for thorough verification and if found to have been performing different functions, the same should be excluded from the list of comparables, after hearing the assessee. Computation of the working capital adjustment - As computation of the working capital adjustment was not properly done and the same has to be done in accordance with the ALP margins, and accordingly directed the TPO/learned Assessing to re-compute the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 2,20,45,360/- declaring international transactions with AEs (Associated Enterprises). Determination of Arm's Length Price (ALP) of international transaction was referred to the Ld. TPO and the Ld. TPO proposed an adjustment of ₹ 9,83,91,432/- as ALP, out of which the revenue from the provision of basic market research and testing was the major international transaction for that TP analysis and the subject matter of this appeal. 3. It could be seen from the record that in respect of provision for basic market research and testing, the assessee adopted TNMM as the most appropriate method by using the operating profit by operating cost as the profit level indicator. Assessee selected following nine comparables: (i). Cyber ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Systems and HSCC (India) Ltd. apart from the working capital adjustment. 6. In so far as ITDC (segment) is concerned, Ld. TPO agreed that the Ashok reservation and marketing services (segment) is similar to the assessee, but on the ground that no segmental details are provided and also that it fails the employees cost filter, rejected the same. 7. According to the Ld. DRP, inasmuch as ITDC is a government owned company with 92.11% held by the President of India and 7.87% held by Indian Hotel Company, ITDC is not a good comparable. 8. It is submitted before us that segmental details of Ashok Reservation and marketing service Division are available and is a comparable. Apart from this, it is submitted by the Ld. AR that this compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars also the ITDC was a Government owned company and no change of facts and circumstances is brought to our notice. We, accordingly, hold it to be a good comparable and direct the ld. TPO/Assessing Officer to include it in the final list of comparable to bench mark the international transactions. 11. Now coming to Hi Tech Laboratories Ltd., this company is rejected on the ground that it provides analytical testing services, whereas according to the assessee the analytical testing and preparing of physical report are similar to the function of the assessee. Apart from this, Ld. AR submits that this comparable was accepted by the Ld. CIT(A) for the assessment year 2005-06, Ld. DRP for the assessment year 2007-08 and Ld. TPO himself for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensing requirements and acts as a liaison between all related Government and regulatory agencies and providing specialized consultancy services. Apart from this, it is submitted that in assessee's own case for the assessment year 2013-14, this comparable was dealt with. 16. We have gone through the paper book on this aspect. In ITA No. 7419/Del/2017 for the assessment year 2013-14, in assessee's own case, a coordinate bench of this Tribunal dealt with this issue and after perusing the documents in respect of this company it is directed that Axis Integrated System Ltd. has to be excluded along with M/s. Aptico Ltd. and Killik Agencies and Marketing Ltd. No difference in the fact situation is pleaded for this year and by respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the professional consultancy services in healthcare and other social sector has to be compared with the functions performed by the assessee, and that aspect needs proper verification as the data before us cannot convey as to how this comparable has to be excluded or included. Therefore, it will be appropriate to remand the issue relating to its comparability to the file of the Ld. TPO/learned Assessing Officer for thorough verification and if found to have been performing different functions, the same should be excluded from the list of comparables, after hearing the assessee. 20. In respect of the working capital issue, in ITA No. 7419/Del/2017, in assessee's own case under similar facts and circumstances the coordinate Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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