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2016 (1) TMI 1273 - AT - Income TaxTPA - selection of comparable - Held that:- As AR submitted that there is no extra ordinary event took place in the case of Quintegra Solutions Ltd. and it was only with the case of Singapore company. Being so, we are inclined to give direction to the TPO to see whether any merger taken place in the case of Quintegra Solutions Ltd. or not. If any merger taken place in some other subsidiary then, Quintegra Solutions Ltd. is to be considered as a comparable case. Accordingly, this issue is remitted back to the TPO for fresh consideration. Regarding M/s. Vama Industries Ltd., considering as comparable, it mainly deals with software services and the assesse is dealing in global IT solutions, offering multiple service offerings ranging from application development and maintenance, application re-engineering to application testing and outsourced software development. Being so, these are ultimately different. Accordingly, rejection of the TPO is justified. Bodhtree is not considered as comparable to the assesssee’s case to determine the ALP by TPO. Disallowance u/s.14A with rule 8D as expenditure incurred in relation to exempt income earned - Held that:- Sisallowance u/s.14A r.w. Rule 8D should not exceed the exempt income. The alternative claim of the assessee was that disallowance if at all should be made, it should be restricted to exempt income earned and not beyond that. Accordingly, the AO is directed to look at this issue on this angle and decide it afresh .
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