TMI Blog2022 (12) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 - ITAT HYDERABAD ] Even in the order for the assessment year 2011-12 (supra), this issue was dealt with and decided in favour of the assessee. Hence, while following the consistent view, we allow this ground of appeal. - ITA No. 573/Hyd/2017 - - - Dated:- 22-9-2022 - SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER Assessee by: Shri Harpreet Singh Ajmani Revenue by: Shri Rajendra Kumar ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 30/01/2017, passed by the Learned Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad ( Ld. AO ) in the case of M/s. TNS India Pvt. Ltd., ( the assessee ) for the AY.2012-13, under section 143(3) r.w.s. 92CA r.w.s. 144C of the Income Tax Act, 1961 (for short the Act ), consequent to the directions of Hon'ble Dispute Resolution Panel, Bengaluru ( DRP ), assessee filed this appeal. 2. Brief facts of the case are that assessee is engaged in the business of conducting quantitative and qualitative market research and relative services and provides related back office data processing services for domestic and international clients. They have filed their return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of ITeS and benchmarked the entire transaction at the entity level. Learned TPO rejected the economic analysis resulted in the study conducted by the assessee, undertook a fresh analysis by selecting ten companies, and determined the weighted average margin of such companies at 24.99% whereas the margins earned by the assessee, as per learned TPO happened to be at 16.94%. On this premise, learned TPO suggested an upward adjustment. 7. Before the learned DRP, assessee sought the exclusion of six entities, namely, Accentia Technologies Ltd., Crossdomain Solutions Pvt. Ltd., Datamatics Global Services Ltd., Eclerx Services Ltd., Infosys BPO Ltd., and TCS e-Serve Ltd., and the inclusion of two entities, namely, ACE BPO Services Pvt. Ltd., and Datamatics Financial Services Ltd., but the learned DRP retained all these comparables. As stated supra, before us, the challenge is limited only to Eclerx Services Ltd., and Infosys BPO Ltd. 8. In respect of Eclerx Services Ltd., before the learned TPO, assessee contended that the company is a KPO and engaged in providing data analytics and process solutions, apart from providing consulting and outsourcing services to support financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies. According to the learned DRP, the functional comparability is the touch stone and not the volumes of turnover or profits. Accordingly, learned DRP decline to interfere with the observations of the learned TPO. 13. It is submitted before us by the learned AR in respect of Eclerx Services Ltd., that it is a KPO company deriving income from data analytics and customised process solution,s providing a broad suite of services including financial services like trade processing, reference data, accounting and finance expense management activities and sales marketing services like online operations and web analytics, business intelligence, data management and reporting etc. He further submitted that no segmental information in respect of various segments is not available. He further submitted that Infosys BPO Ltd., is a business giant with a turnover of 1312 crores whereas the assessee is of 214 crores, with huge brand value and asset base. Apart from this he submitted that on January, 4, 2012 Infosys BPO Ltd., acquired 100% of the voting interest in Portland Group Pty Ltd., a strategic sourcing and category management services provider based in Sydney. 14. Learned DR placed re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. It is submitted by the learned AR that ACE BPO Services Pvt. Ltd., is engaged in only revenue cycle management related activities for health care industry and the segments of health care, call centre and management services are part of revenue cycle management business which answers the description of ITeS. In respect of Datamatics Financial Services Ltd., learned AR submitted that this comparable was selected by learned TPO in assessee s own case for the assessment year 2007-08 and 2008-09, observing that the company s ITeS segment qualifies all the filters. He further submits that Datamatics Financial Services Ltd., is classified under database services in prowess. According to the learned AR, both these companies pass all the filters. Learned AR further submits that the assessee is ready to furnish the information for this particular assessment year also and given an opportunity the assessee would co-operate with the learned Assessing Officer/learned TPO in respect of these two comparables. 18. Having gone through the record in the light of the above submissions, we are of the considered opinion that it is a fit case to set aside the issue relating to these two comparabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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