Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 1161 - AT - Income TaxTPA - selection of comparable - software development segment segment - Held that:- M/s ICRA Techno Analytic Ltd(Seg.), M/s Infosys Ltd., M/s Kals Information Systems Ltd., (Seg.), M/s Persistent Systems Ltd. and M/s Tata Elxsi Ltd. companies were rightly excluded by the DRP from the list of final comparables. M/s R.S.Software (India) Ltd - there is no segment information available for sale of software services and product. In the light of these facts, it was held by DRP that this company should be excluded from the list of final comparables. Under these facts, we find no infirmity in the order of the DRP for directing exclusion of this comparable. Accordingly, appeal of the revenue in respect of this segment i.e. software development segment is dismissed. ITES segment - M/s Acentia Technologies Ltd.(Seg.) company is predominantly engaged in providing services onsite, we decline to interfere with the order of DRP regarding exclusion of this company. M/s Eclerx Services Ltd exclusion confirmed M/s ICRA Online Ltd (Seg.) - Exclusion of this company was directed by DRP by applying export revenue filter of 75% and it was submitted by the ld. AR of the assessee before us that he has no objection if this filter of 75% export is not applied. Accordingly, we reverse the order of the DRP regarding exclusion of this company and direct the AO/TPO to include this company i.e. M/s ICRA Online Ltd (Seg.)as a good comparable. M/s Sundaram Business Services Ltd. - Regarding this comparable, we find that this is noted by the DRP on page-24 of its order that only 36.91% of the turnover is from exports and therefore, this company is failing 75% export earning filter since both sides agreed that this filter i.e. 75% export earning filter should not be applied, we reverse the order of DRP on this comparable and hold that this comparable company i.e. M/s Sundaram Business Services Ltd., should be reinstated as a comparable. Accordingly, the appeal of the revenue regarding this segment is partly allowed. M/s Acentia Technologies Ltd exclusion confirmed M/s Microland Ltd - as from the perusal of the annual report of this company i.e. M/s Microland Ltd., it is seen that out of total revenue of ₹ 135.00 Crores, the revenue from ITES is only ₹ 31.73 Crores which is around 23% of revenue and hence this company is not predominantly engaged in ITES and therefore, cannot be considered as a good comparable. Exclusion of two comparables i.e. a) HCCA Business Service Pvt. Ltd., and b) M/s Killick Agencies and Marketing Ltd confirmed. M/s Acentia Technologies Ltd.exclusion confirmed M/s ICC International Agencies Ltd. - Since the assessee is not engaged in trading activity, in our considered opinion, this company cannot be considered as good comparable in the present case and hence, we direct the AO/TPO to exclude his company from the list of final comparable.
|