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2014 (4) TMI 1089 - AT - Income TaxTransfer pricing adjustment - exclusion of comparable - Held that:- No infirmity in the action of the CIT(A) in excluding the two companies, viz. Infosys and Wipro from the list of comparables. We accordingly uphold the order of the CIT(A) on this aspect reject the grounds of the Revenue on this appeal. See Capital IQ Information Systems (India) (P.) Ltd. Versus Deputy Commissioner of Income-tax (International Taxation) [ 2014 (3) TMI 626 - ITAT HYDERABAD ] Eclerx Services Technologies it is difficult to find out any relatively equal degree of comparability as Eclerx Services, which is engaged in providing high end services involving specialized knowledge and domain enterprise, i.e. KPO companies, and the said entities cannot be taken as comparable for the purpose of determining ALP of the transactions of the assessee company with its AE. Further, in the case of Market Tools Research (2013 (12) TMI 414 - ITAT HYDERABAD), it has been held that Eclerx Services cannot be taken as a comparable in view of the extraordinary profits of that company and that the company was engaged with knowledge process outsourcing business, which is distinct and different from the assessee’s business. Moldtek Technologies Ltd., in the proceedings for the assessment year 2008-09, in assessee’s own case, the DRP has accepted the assessee’s contention that that company cannot be taken as comparable because of exceptional financial results, due to merger/de-merger. In this view of the matter, the CIT(A) in our view is justified in excluding these two companies as well from the list of comparables. - Decided against revnue
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