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2016 (8) TMI 1165 - AT - Income TaxTPA - selection of comparable - Held that:- In this case, there is no dispute that RSIL is functional comparability to the assessee’s case. However, the accounting year adopted by the RSIL is different from the assessee’s accounting year. RSIL is adopted 1st January to 31st December as accounting year as against the accounting year adopted by the assessee as 1st April and 31st March. However, data for the financial year could be compiled from the audited accounts of RSIL. Hence, the assessee is directed to furnish data for the financial year 2009-10 (1st April and 31st March) to the TPO, who after due verification shall consider the same as comparable to the assessee’s case so as to determine the ALP Microgenetcis Systems Ltd - It is brought to our notice that that financials for the year ended March 2010 relating to this company was uploaded in the MCA portal on 15th December, 2011 and the assessee is in a position to place necessary financials of this company before the TPO. Accordingly, this issue is remitted to the file of the TPO for consideration and decide thereupon if it is functionally comparable to the asessee’s case and turnover of that company is commensurated with the assessee company. Turnover of CG-VAK Software & Exports Ltd. is around Rs. One crore as against the turnover of the assessee company is ₹ 317 crores. Accordingly, in our opinion, turnover of very small company cannot be compared with the assessee company’s turnover. This ground is rejected. Datamatics Financial Services Limited is functionally comparable and if its turnover is commensurating with the assessee company’s turnover, it is to be considered as comparable to determine the ALP. Accordingly, this issue is remitted to the TPO for fresh consideration. Fortune Infotech Limited requires to be excluded from the list of comparables as it has developed and owns its unique web based software by which it provides niche services to its customers The Healthcare Business Services Ltd company was not functionally comparable to the assesse’s case and this company is in health care outsourcing services and in addition, it also renders software development services and it is the fact that segmental information was not available. The company was also a 100% EOU, under STPI guidelines. Hence, we are inclined to accept the contention of the ld. AR that this company should be excluded from the comparables Allowability of deduction is to be considered u/s.10A instead of sec.10B - Held that:- If the assessee is not entitled for deduction u/s.10B of the Act, then the alternate claim of the assessee is to be considered. Accordingly, we remit the issue to the TPO to verify whether the assessee is entitled deduction u/s.10A of the Act.
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