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2014 (1) TMI 954 - AT - Income TaxReasons recorded for computation of ALP u/s 92CA(1) of the Act Compliance of section 92C(3) of the Act Held that:- The company does not have any reportable related party transactions which have a bearing on the operating profits of the company - TPO has failed to notice that the Ma Foi data for December 2007 has substantial portion i.e. 9 months data that falls within the FY 2007-08 - Comparable companies draw up their financial statements for statutory purposes under the Companies Act, 1956, which are considered for comparability - The financial statements may be independently drawn up for tax purposes as of March 31 - The Companies are free to adopt different statutory year-ends, which may or may not coincide with the March year end - The fact that a company has a statutory year-end on December 31, 2007 as against the financial year end for tax purposes of March 31, 2008 does not by itself render that company incomparable, for the reason that the financial information is very much contemporaneous and falls within the period permitted by the Income-tax Rules, 1962. There is no difference, in view of DRP, between Personal Employer Organisation (PEO) and recruitment agency functionally - The revenue model may be different but that is an accounting issue, functionally there is no difference - The reason for recruitment from India is to avail, the services at a particular price - The detailed objections raised by counsel for the assessee and DRP has not considered the objections of the assessee and merely held that Info Edge (India) Ltd. and Overseas Manpower Corporation Ltd. are functionally same as the assessee - in Assessment Year 2007-08 the matter has already been restored back to the file of the DRP - keeping in the view the entire conspectus of the case and in the light of the submissions made by counsel for the assessee and the findings recorded by the DRP the matter is required to be remitted back to the DRP/AO for re-adjudication Decided in favour of Assessee.
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