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2015 (5) TMI 1075 - AT - Income TaxTransfer pricing adjustment - selection of comparability - Held that:- A comparable having a different accounting year cannot be a valid comparable. In the case under consideration the assessee is following financial year ending whereas the comparable chosen by the TPO is having calendar year ending. Megasoft Ltd. cannot be taken as a valid comparable for software development company thus should be excluded from the comparables. As far as KLAS Information Systems Ltd. is concerned, it is found that company has revenue’s from software products as well as software development, whereas the assessee is engaged in the business of software development only. We therefore, agree with the assessee that the company i.e. KLAS Information Systems is not a good comparable. If both these comparables are taken out of the list of the TPO the profit margin in case of the assessee comes within the permissible range and no upward adjustment would be required to be made. The nature of the service provided by Autodesk India Pvt. Ltd. were of different nature as compared to the services rendered by the assessee. Considering the facts and circumstances of the case effective ground of appeal is decided in its favour and additional ground is allowed for statistical purposes
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