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2014 (7) TMI 1233 - HC - Income TaxTPA - whether Tribunal is wrong in concluding that M/s.Vishal Information Technology Limited cannot be considered as a comparable case? - Held that:- M/s.Vishal Information Technologies cannot be considered as a comparable case as this company was rejected by coordinate Bench while deciding similar issue in the case of M/s.Brigade Global Services Pvt. Ltd [2014 (9) TMI 143 - ITAT HYDERABAD] as held the employee’s cost to total cost ratio is worked out at 2% as compared to the industry average of 30 to 40%. The assessee’s employee’s cost to total cost ratio is worked out at 47%. Since the employee’s cost form major cost base in ITES service industries, the low ratio of comparables implies that it would not be providing services by employing its own sources. Being so, the assessee is not alike to M/s.Vishal Information Technologies Ltd.Tribunal is not wrong in deciding the issue maintaining the rule of consistency. Consider profit before depreciation and interest (PBDIT) as profit level indicator as directed by ITAT - Held that:- Tribunal on fact found that the depreciation has an impact on the profit margin. Based on the aforesaid findings, we feel that the impugned judgment and order of the learned Tribunal does not appear to be unjust and inappropriate.
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