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2013 (11) TMI 1314 - AT - Income TaxSelection of comparables – Comparable being Vishal Information Technologies Ltd – Held that :- Annual accounts that Vishal Information Technologies Ltd was outsourcing a considerable portion of its business - Assessee is mainly engaged in rendering services at its own and not outsourced - Accordingly this case was excluded from the list of comparables. Comparable being CMC Limited – Held that:- CMC’s related party transactions (RPTs) are much more than 25% of the total revenue – Reliance has been placed upon The Delhi Bench of the Tribunal in the case of ACTIS Advisers (P.) Ltd. v. Dy. CIT [2012 (10) TMI 779 - ITAT, DELHI], wherein it has been held that a case can be taken as uncontrolled if its related parties transactions do not exceed 25% of the total revenue – CMC Ltd., rejected as comparable. Comparable being R Systems International Ltd. – Held that:- Unless the financial year-end of a comparable case matches with that of the assessee, it cannot be considered as comparable because the figures of different financial year endings are distorted – Reliance has been placed upon the judgment in the case of Automation India Ltd. v. Dy. CIT [2009 (2) TMI 736 - ITAT PUNE].[IT Appeal No. 4 (PN) of 2008, dated 11-2-2009], wherein it has been held that it is mandatory for the purposes of comparing the data of an uncontrolled transaction with an international transaction that the same must relate to the financial year ending similar to that of the assessee – Hence, excluded from the list of comparable.
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