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2011 (1) TMI 933 - AT - Income TaxArms Length Price - case referred to Dispute Resolution Panel(DRP) - Assessee’s submission in this regard is that these are super normal profit making companies and should be excluded from comparables set - Held that:- TPO has not given any comment regarding objection of the assessee regarding inclusion of Crane Software International Limited in the comparables. Regarding Jayamaruthi Software Systems Ltd. he brushed assessee’s objection by simply stating that it is a listed company and results are audited. Regarding assessee’s objection for inclusion of M/s GDA Technologies Ltd. that the said company has sufficient related party transaction, but the TPO has brushed the contention by ignoring the documents submitted by the assessee and holding that data available with him does not show details of related party transaction. It is undisputed that these three companies have shown supernormal comparable profits as compared to the other comparable. There exclusion from the list of comparable is quite correct. By excluding these three companies from the comparables and showing the computation on the basis of TPO data the arithmetic mean of OP/OC to 17.15% which falls within the +-5% range as permitted by section 92(C)(2). As assessee has made voluminous submissions including paper books before the DRP who has passed a very cursory and laconic order without going into the details of the submissions this is quite contrary to the mandate of section 144C of the IT Act. In favour of assessee.
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