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2015 (10) TMI 2647 - AT - Income TaxTPA - comparable selection - Held that:- Assessee is engaged in providing software development services. The assessee has two software development centers in Chennai and Hyderabad, both of which are registered under the STPI scheme of Government of India as 100% export oriented units, thus companies dissimilar with that of assessee need to be deselected from final list of comparable. Since the information considered by the A.O. said to be belonging to e-Infochips Bangalore Ltd., and the information filed by the assessee before us are at variance with each other, we deem it fit and proper to remand the comparability of this company with the assessee to the file of A.O./TPO to ascertain the correct facts and take a decision in accordance with law. It is no doubt settled by various judicial precedents that where segmental data is not available, such company cannot be taken as a comparable. Further, it has also been held that if there is an extraordinary event such as merger/amalgamation, even then, such company cannot be taken as a comparable to an assessee. The A.O./TPO shall take into consideration such judicial precedents before taking a decision about the comparability of e-Infochips Bangalore Ltd., with the assessee company. Accordingly, assessee’s appeal is treated as partly allowed for statistical purposes. Infosys Technology Ltd., be excluded from the list of comparables on account of functional dissimilarity and owning of significant intangibles and brand value. As regards L & T Infotech Ltd.be excluded as segmental data is not available and was rejected by the TPO in the earlier years on this ground alone. As regards Tata Elxsi Ltd. this company be excluded on functional dissimilarity.
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