Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 405 - AT - Income TaxTransfer pricing adjustment - selection of comparables - Accentia Technologies Limited - contention of the assessee that in case of the aforesaid company, there is amalgamation in December, 2006, which has impacted the financial result - Held that:- As can be seen from the order of Capital IQ Information Systems India Pvt. Ltd [2014 (3) TMI 626 - ITAT HYDERABAD] the aforesaid company was excluded since ex-ordinary events like merger and demerger had taken during the relevant financial year which must have impacted the financial results of the company. That besides the high volume of on-site operation of Accentia Technologies Limited also makes it functionally dissimilar to the assessee. These facts are not all considered either by the TPO or by the DRP. Therefore remit the matter to the file of the AO who shall verify the fact whether actually merger has taken place during the year and if it found so, then the aforesaid company has to be excluded from the list of comparables. Accurate Data Convertors Private Ltd. - Held that:- Since the TPO has not given any opportunity to the assessee to raise his objections with regard to the aforesaid company, remit this issue to the file of the AO who shall decide the acceptability or otherwise of the company as comparable after considering the assessee 's objections. Vishal Information Technologies Ltd. - Held that:- As can be seen from the order of Capital IQ Information Systems India Pvt. Ltd [2014 (3) TMI 626 - ITAT HYDERABAD] the aforesaid company unlike the assessee has outsourced considerable portion of its business to third party vendor. Hence, it cannot be considered as a comparable. Asit C Mehta Financial Services Ltd. - Held that:- The company has a employee cost of 24.78% compared to assessee's 44%. That besides also the DRP in assessee's own case for asst. year 2008-09 has excluded this company which has not been controverted by the DR. Exclusion directed. Bodhtree Consulting Limited - Held that:- From the annual report of the aforesaid company it is seen that the said company earns its revenue from software development. Therefore it is functionally different from the assessee. This fact has not properly considered by either by the TPO or DRP. Therefore remit the matter back to the file of the AO to reconsider. Eclerx Services Limited - Held that:- As can be seen from the order of Capital IQ Information Systems India Pvt. Ltd [2014 (3) TMI 626 - ITAT HYDERABAD] aforesaid company cannot be treated as not only the said company is functionally different being engaged in providing KPO services but it has also shown extraordinary high profits. Exclusion directed. Informed Technologies India Limited and Iservices India Private Ltd - Held that:- As can be seen from materials on record, the assessee has not raised any objection either before the TPO or before the DRP in respect of aforesaid companies. The assessee has also not made out a very convincing case before us to justify excluding the aforesaid two companies. Hence, we are of the view that these two companies have been correctly selected as comparables. Mold-Tek Technologies Limited - Held that:- As can be seen from the order of Capital IQ Information Systems India Pvt. Ltd [2014 (3) TMI 626 - ITAT HYDERABAD] the said company is to be excluded as it has shown extraoridinarily high profit & that besides also the DRP in assessee's own case for asst. year 2008-09 has excluded this company which has not been controverted by the DR. HCL Comnet Systems & Services Limited, Infosys BPO Limited and Wipro Limited - Held that:- As can be seen from the order of Capital IQ Information Systems India Pvt. Ltd [2014 (3) TMI 626 - ITAT HYDERABAD] the aforesaid three companies cannot be treated as comparable, considering their substantially high turnover as compared to that of the assessee. Also agree that the turnover filter of ₹ 1 crore to ₹ 200 crore as applied in Genisys Integrating Systems (India) (P.) Ltd. [2011 (8) TMI 952 - ITAT BANGALORE] should also apply to the facts of the present case, considering the assessee's turnover of mere ₹ 60 crores. Thus companies having turnover of ₹ 1 crore to ₹ 200 crore alone can be considered as comparable, in the case of the assessee. Exclusion directed. Reduction of communication charges from the export turnover without reducing it from the total turnover while computing deduction u/s 10A - Held that:- his issue is squarely covered in favour of the assessee by the judgment of CIT vs. Gem Plus Jewellery Ltd [2010 (6) TMI 65 - BOMBAY HIGH COURT] & ITO vs. Sak Soft Limited [2009 (3) TMI 243 - ITAT MADRAS-D] thus direct AO to reduce communication charges both from the export turnover as well as the total turnover for computing exemption u/s 10A. This ground of the assessee is allowed.
|