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2011 (5) TMI 508 - PUNJAB AND HARYANA HIGH COURTDetermination of Arm's Length Price - International Transaction - Assessee had employed Transactions Net Margin Method for the purpose of computing Arm Length Price - TPO noticed that one of the comparables, out of independent comparable selected by the assessee for the computation of Arm's Length Price was M/s. Imercius Technologies India (P.) Ltd. which showed a net loss at the rate of 73.48 per cent - The TPO rejected M/s. Imericus Technologies India (P.) Ltd. as comparable holding that the said company was incorporated in 2002 only and its networth was negative whereas turnover was also less than the turnover of the tested party - Accordingly, the TPO passed an order u/s 92CA(3) of the Act on 23-11-2006 determining the Arm's Length Price of remuneration received by the assessee for software development services - Held that: the Tribunal vide order dated 22-10-2009 upheld the exclusion of M/s. Imercius Technologies India Pvt. Ltd. as comparable and remanded the issue of 5 per cent relaxation to the Assessing Officer to reconsider the same in view of the amendment in section 92C(2) of the Act - The Tribunal further accepted the additional ground taken by the assessee for exclusion of M/s. Datamatics Technologies from the list of comparables for the purpose of determination of Arm's Length Price - Decided in favour of assessee.
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