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2014 (1) TMI 892 - AT - Income TaxTransfer pricing adjustment Arms length principle not followed Provision of software development services made - Benchmarking approach rejected Selection of comparable - Held that:- The matter indeed deserves to be remitted to the file of the Assessing Officer so that both the aspects, which are very crucial to determination of correctness of arm's length price can be reexamined by the Assessing Officer in the light of appropriate clarifications of the assessee - the assessee has set out various objective tests employed in narrowing down universe of 18,249 comparables available in the Prowess database to 463 comparables. However, the qualitative analysis based on which, 20 comparables were finally selected from these 463 comparables, is not specified - there cannot be cherry picking for selecting unsuitability of comparables either, The assessee should have subjected all the comparables selected by the revenue to the same tests - Decided in favour of Assessee.
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